What is an OEM?

An OEM, or "Original Equipment Manufacturer," makes a part or component used in another company's product. For example, Ford uses windshields from PPG, an OEM.

OEM definition

An Original Equipment Manufacturer (OEM) makes components of another company’s products. An OEM component might be a part, a subsystem, or software. Examples include operating systems (OS) and microprocessors in computers. Typically, the computer manufacturer makes neither the microprocessor nor the OS. Rather, the computer maker buys these on an OEM basis from other companies. In this sense, OEM can also be used as a verb, as in "to OEM a part" from another business.