RAYMING provide electronic manufacturing services for 15years, As a global leader in high-mix low-volume manufacturing, we see first-hand the evolution the EMS industry is experiencing and the critical role we play in the electronics value chain. In this new guide, you’ll learn about the driving factors of EMS, applications, challenges, and what to consider when outsourcing the manufacturing of your product, We serve industrial, Robotic, AI automotive Medical military electronic control area.
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Electronic manufacturing services and other electronic trade and service providers are very important for having the electronics we all use in our everyday lives. The ever-increasing reliance on electronics by diverse global sectors has enhanced the demand for electronic manufacturing services. It is a situation that gets more exacerbated with the evolution of the complexity of electronic devices. As a domestic or industrial electronics player, you have no option but to learn everything you can in electronic manufacturing.
Most companies nowadays have some form of an electronic component in their products. The technology is important to know and understand, but it doesn’t always come cheaply. Luckily, it’s possible to outsource the manufacturing process to a company specializing in electronic manufacturing services (EMS). But what are these services? Why would you want them? And how can they benefit your company? Read on for information about this niche market and some potential benefits. The article will detail all these necessary details about electronics manufacturing.
What is Electronic Manufacturing Services (EMS)
Electronic Manufacturing Services refers to a range of electronic product design, development, and manufacturing services offered by EMS companies. Depending on the type of EMS company, they either offer only product development and design services, or they offer both product design and manufacturing services.
As technology continues to evolve, so does the world of electronics, and with that in mind, EMS are experiencing rapid growth within the industry. An EMS company offers more than just a contract manufacturing service. They offer total solutions, including development, engineering, industrial design, and production management.
Various factors are attributed to the growth of the EMS industry. Some of these factors are:
- the need for more cost-competitive products
- development and deployment of smaller and less complex products
- increasing globalization in the electronics industry and
- new commercialization strategies in the consumer electronics sector.
The Situational Context of Electronic Manufacturing Services
The advent of electronic manufacturing can get attributed to the introduction of the digital computer, its integration, and its evolution into mainstream electronics from the ’90s. However, it has increased operational capacity, availability, economy, and diversity in recent years. What’s more? The complexity involving electronic assembly and miniaturization has brought the significance of EMS to the fore.
Therefore, the prerogative regarding the provision of electronic manufacturing services lies primarily on an electronic manufacturing company. Such services often encompass a range that spans electronic components’ design, manufacturing, assembly, and testing. However, it becomes electronic contract manufacturing if it involves manufacturing the original electronic manufacturers (OEM).
Currently, the EMS industry proves dynamic, with forecasts placing its growth at 7.5% annually from 2018 to 2024. Such growth implies increased opportunities for electronic manufacturers to capitalize on. Consequently, an array of electronic manufacturing service providers exist, which can represent a challenge when you want to pick one for your electronic manufacturing needs.
All notwithstanding, however, if you need electronic contract manufacturing services, then engaging a suitable contract manufacturer becomes crucial. However, EMS providers such as RayMing PCB and Assembly can offer companies simple documents like customer design files based on their requirements. It comes before the electronic development, assembly, component assembly, and product testing. Alternatively, an ECM will provide complex solutions encompassing aspects like manufacturing components, design services, and the provision of assembled prototypes.
Since the global situation features a high demand for cutting-edge electronic equipment and devices across diverse industrial niches, authorities have had to reign in and spur the sector’s development through favorable EMS policies and regulations. For instance, India has developed and adopted schemes like PIL and SPECs to enhance electronics and component manufacturing in the country.
The Services Offered by EMS Companies
As already stipulated, diverse EMS companies exist across the world. Each electronic manufacturing service company offers services that may vary from competitors. However, every EMS Company should offer the following electronic manufacturing services.
· Printed circuit board assembly
The assembling of PCBs is one key electronic service that almost every EMS Company offers. It can entail surface mount or through-hole tech methods of soldering the PCB components on the circuit board. Additionally, the components range from integrated circuits, transistors to resistors. But since most of these components are tiny, having a machine to pick and place besides aligning them becomes key, something you realize with EMS companies.
· Cable assembly
Any top EMS provider will have cable assembly as one of their electronic service areas. It entails the production, engineering, and testing of cable assemblies, mechanical subassemblies, and harnesses. It can also encompass panel assembly and wiring.
· Electromechanical assembly
An EMS provider should offer electromechanical assembly services, mostly plastic, steel, or aluminum box builds. Additional services related to electromechanical assembly can encompass encapsulation, functional testing, and 3-D modeling. Others include configuration management, heat shrink deployment, and custom packaging for shipping.
· Contract designing
An EMS company often proves happy to outsource expert electronic manufacturing services like designing. Such professional design services feature DFX analysis, validation, environmental tests, design, documentation, etc. In most instances, such services involve collaboration between material managers, engineers, etc. The team design by carrying out the following.
- Circuit prototyping and simulation
- 3-D physical and CAD modeling
- Costing exercises
- Studies on technical feasibility
- Quality review
It is a significant aspect of the electronic manufacturing process that most top EMS providers offer. Services can include visual modeling, PoC (proof of concept), functional prototypes, or working prototypes. It becomes vital in electronics manufacturing as it prevents embarrassment when the electronic product heads for launch. Some of the vital things prototyping ensures to include the following.
- It checks the electronics’ design faults either caused by human or technical errors besides recommending enhancements pre-finalization of your electronic design.
- Safeguarding your budget by ensuring that the design suits its intended market before heading to mass production or manufacturing. It ensures this by preventing incidences of re-production.
- Prototyping ensures that the characteristics of the product get inspected and ascertained as functional. It primarily happens with the theoretical values stipulated in the design phase.
- It confirms production, especially in solidifying aspects such as general product packaging and design before production.
- Finally, prototyping ensures product durability by testing and confirming aspects involving shock resistivity, power variations, and temperature variations.
The process of testing your circuit boards often proves necessary before assembly, something that most electronic manufacturing service providers offer. It guarantees a fully assembled and functional board, which then limits any supply chain challenges. Some of the electronic PCB testings encompass the following.
- ICT or In-circuit testing
- Flying probe test
- AOI or automated optical inspection
- Burn-in testing
- Extra functional testing
· After-market services
A top EMS provider will always offer services post the production and assembly stages. It can include repairing and upgrading, calibration, and refurbishing electronics. Additionally, after-market services can also encompass troubleshooting, inspection, painting, and cleaning.
High-Mix Low-Volume Electronic Manufacturing
Alternatively inferred as make-to-order manufacturing, HMLV implies the production of small quantities of various electronic products. As part of the electronic manufacturing services, it represents a method that manufactures highly complex and unique products. Such electronic products often require specific quality specs.
High-mix low-volume (HMVL) is a modern manufacturing practice that has increasingly replaced the once-popular low-mix high-volume electronic manufacturing. While the LMHV focused on producing high volumes of similar electronic products, the current market emphasizes a need for customized electronics, which becomes a reality with HMVL.
For instance, products like electronic appliances or vehicles underwent the LMHV manufacturing process before as the demand solely focused on quantities. However, under current circumstances, consumers want tailor-made or customized products that suit their individual preferences. It, therefore, becomes necessary to have the high-mix, low-volume electronic manufacturing process to cater to such market demands.
Enhancing High-Mix Low-Volume Manufacturing Operations
One significant feature of high-mix, low-volume manufacturing entails a constant demand for changes to the job, machines, and materials. It results from the highly customized nature of electronic product manufacturing. However, the limited nature of the production line and the enormous product variety involved ensures the frequent change in the scheduling of materials and jobs, which can cause inconsistency and errors in products.
To alleviate this, it helps to consider the below ways of enhancing the HMLV manufacturing processes.
- Optimization of the flow
It becomes prudent to optimize low-volume manufacturing operations by smoothening the product flow. Remember, it becomes a possibility regardless of the numerous product variations.
- Developing a plan
It relies heavily on the optimization of the product flow. Here, the plan has to align on the flow to better predict outcomes besides eliminating failures during production.
- Enhancing communication between members of the workforce
It becomes necessary to create an open working environment for employees. Such an environment ensures that each employee, regardless of the department, can check on the production status besides alerting the operators accordingly.
- Upholding flexibility
It becomes crucial to ensure the company’s operational flexibility from machine inventory to staff scheduling to handle the frequent changes that HMLV features.
The Distinction between Original Equipment Manufacturing and Electronics Manufacturing Service
At times, the distinction between original equipment manufacturing (OEM) and electronic manufacturing service is blurry. However, to get to grips with the differences, consider the aspects detailed below.
OEM implies manufacturing electronic products or components that get used in other companies’ assembly and manufacturing processes. In other words, an original equipment manufacturer possesses the market products or components. On the other hand, EMS infers to the designing, manufacturing, testing, and distributing electronic assemblies or products for OEMs. Here, the products are for OEMs. It is also vital to note that EMS provides value-added services.
Most electronic equipment manufacturers sell high-volume electronic products. However, a few engage in the sale of low-medium electronic volumes. Conversely, electronic manufacturing service providers specialize in either high-mix, low-volume (HMLV) or low-mix, high-volume (LMHV) production environments. The technological density also varies in line with the production environment.
- Electronic product rights
Original equipment manufacturers have rights over their electronic products while the situation proves different with the electronic manufacturing service providers. EMS providers have no rights.
OEMs tend to concentrate on design innovation and product development, while the electronic manufacturing services (EMS) focus on supply chain management, repair, and design for support. EMS providers manufacture top and world-class quality electronic products.
Picking an Electronic Manufacturing Services Provider
The process of picking an ideal and top-quality electronic manufacturing services provider can prove arduous. It primarily arises from a vast number of EMS providers available and the similarities such companies have regarding important attributes of electronic manufacturing. So it becomes helpful to ask some fundamental questions before picking an ideal world-class EMS provider. Some of these questions should entail the following.
What customer care service does the company offer?
The relationship between you and the EMS provider proves key in ensuring a successful electronics manufacturing process. Therefore, it becomes prudent to consider the potential EMS provider’s customer care practices and policy before deciding on who to pick. Crucial considerations should revolve around the working relationship you want. For instance, would you prefer communicating with a team or a single contact point? Additionally, it becomes vital to establish your communication expectations by asking questions regarding their customer care services.
What is the financial health of the prospective EMS Company?
It becomes crucial to get an EMS provider with the potential for a lasting working relationship. Therefore, looking at the financial strength of the prospective EMS Company proves vital before making your decision.
Does the EMS provider possess the relevant certifications needed to cater to your electronic manufacturing needs?
The targeted market and the product requirements often influence the type of EMS partner to settle for. Because of this, it becomes prudent to identify the types of certifications an EMS provider has to ensure that they meet the industry regulations.
For instance, it can involve compliance with REACH or RoHS regulations or standards. While it is true that industry regulations at times complicate issues, finding an ideal EMS partner will ensure your electronic product meets the relevant quality standards. A case in point is the ISO 9001 certification for all IPC class two and three electronics. Further, a 13485 or AS9100D certification suffices for highly reliable electronic products.
Is the EMS provider amenable to the adoption of new equipment and technologies?
Tech in general advances quickly, and it becomes crucial to get an EMS partner who remains relevant to such advances like IoT and AI. No one desires their electronic products getting manufactured by outdated technology and machines. It, therefore, becomes crucial to enquire and ascertain that the prospective EMS partner has all the relevant and up-to-date equipment and technologies. Additionally, checking whether the company proves adaptable to changing industry trends also becomes crucial for any long-term working relationship. Industry 4.0 resourcefulness is transforming aspects of electronics manufacturing with data reporting and connected machines featuring prominently.
What processes and policies does the EMS Company have in place for when things go wrong?
Contracting an electronic manufacturing services partner never implies that anything cannot go wrong. Sometimes it can, and it becomes crucial for the EMS partner to have processes, plans, and policies to remedy the situation. It can include policy aspects like return material authorization. Additionally, such policies need to meet the expectations of your company.
How will the EMS Company safeguard your IP or intellectual property?
Safety of sensitive business information, including product designs, becomes crucial when engaging a prospective EMS provider. How the EMS Company protects this information becomes vital in considering them long-term for your electronic manufacturing. An EMS provider that will go to all lengths in safeguarding your IP or intellectual property proves ideal for lasting EMS provision. You can always determine this through policy arrangements like signing NDAs (non-disclosure agreements) besides demonstrating capacity when it comes to cybersecurity safeguards to prevent your information and concepts from falling into the hands of unintended and wrong people.
Can the EMS Company provide references?
All top electronic manufacturing services providers need to offer you references to enable you to explore their capacity. It happens through checking their prior work and customer relationships. For instance, does the company’s past work align with your company’s expectations (present and future)?
How does the EMS Company handle project changes?
One key aspect you should consider when approaching a potential EMS company features its capacity and receptivity to changes in the electronic project. Therefore, it is vital to ask their approach to handle changes and how flexible they prove. Besides all these, it is also prudent to determine how such changes and adjustments can influence their production timelines, especially when material lead times get factored in. Can such changes impact their pricing significantly as well?
Has the company developed similar products to the ones you want to be built before?
The experience of developing a similar electronic product to the one you want to be manufactured can prove useful, as much as it is not necessary for your potential EMS provider. Such experience builds trust in their capacity to manufacture your specific product designs. It becomes crucial to get an EMS partner with broad capabilities that may prove beneficial to your project. For example, consider whether the company possesses an in-house printed circuit board design team, which can answer any arising questions from the fabrication house. Another vital consideration is whether the company has the technical know-how of building cables or box builds. Such expertise comes in handy in troubleshooting issues besides suggesting product improvements.
What are the EMS providers’ in-house testing capabilities?
It is important to inquire from your EMS provider about their testing capabilities, especially those that prove in-house besides what is required to go to the factory. Further, a top EMS provider has to provide in-circuit testing. It should have the capacity to do functional tests on your electronic product besides helping you create a test for the same whenever necessary.
EMS (Electronic Manufacturing Services) Application Areas
Electronic manufacturing services have become pivotal for diverse sectors. However, to dispel any uncertainties, consider the following EMS application areas.
- Defense and aerospace. It applies in this sector owing to the security and safety aspects of the sector niche. Additionally, the sector demands electronics that prove highly reliable besides possess peak performance.
- Telecom. It always helps get all the necessary support when handling complex electronic manufacturing, such as data and telecom processing. Additionally, factoring in the tech’s network setup becomes key, something that an EMS company covers.
- Industrial. Electronic manufacturing services apply in the industry because of the diverse technologies involved. Additionally, it encompasses an entire product lifecycle that includes specification, scope, etc., besides prototyping, final assembly, and testing. Such processes are fundamental in introducing fresh products into the industry or market.
- Medical. Many original electronic manufacturers in the medical sphere rely on EMS providers for their electronic manufacturing needs. It arises because of the guarantee in quality processes and high standards in quality for the electronic products.
Challenges that Face Electronic Manufacturing
The electronic manufacturing industry, like many other sectors, faces a myriad of challenges. Because of this, EMS companies need to identify and address these challenges to ensure they remain in business. Challenges faced include the following.
- Electronic manufacturers face challenges with ineffective or lack of sturdy product systems of lifecycle management. Consequently, it becomes crucial for manufacturers to find an excellent PLM to avoid making misinformed decisions that can impact the product.
- EMS companies also face challenges with an ever-increasing cost of labor
- An increase in demand for large assemblies coupled with high precision poses a challenge to EMS companies. It becomes crucial for these companies to adopt automation in dealing with high-precision large assemblies. Consequently, finding a unique balance between manual labor and automation of processes becomes key, especially in harsh settings.
- While the demand for electronic manufacturing services is always on the rise, plenty of EMS providers lead to fierce competition worldwide. It is a challenge that all EMS providers have to contend with.
- EMS companies also have to contend with issues of compliance and traceability to ensure quality electronic products.
- Another crucial challenge affecting the EMS sector and EMS companies is the aspect of e-waste. It arises from electronic disposal that ends up polluting the environment.
- It also takes a significant investment in EMS infrastructure besides supporting systems that ultimately manage highly regulated and complex markets such as aerospace, defense, and the medical sectors.
Future Trends in Electronic Manufacturing
The electronic manufacturing scene will keep evolving as it has from the past years. Some of the vital trends that will shape electronic manufacturing include the following.
- Internet of Things (IoT). It is the everyday connection of devices via the internet, allowing a simple reception and sending of information. IoT has an increasing influence on electronic manufacturing.
- Deployment of augmented reality and virtual reality. Use of both VR and AR in electronics manufacturing increase precision and timely product changes. Consequently, it eliminates errors and limits the inspection time.
- 3-D printing. It is a trend that will significantly continue impacting electronic manufacturing. 3-D printing proves instrumental in physical aspects of printing as well as designing and application aspects.
- Big data proves instrumental in minimizing costs, improving the market share, and raising profit margins.
- Industrial robots will also continue having a significant role in revolutionizing electronic manufacturing. Most electronic manufacturing and assembly processes will entirely rely on automation in the future.
- ERP systems is another one to watch in electronic manufacturing
Electronic manufacturing services are important in the development and advancement of electronics. Additionally, the importance of electronics makes it necessary to understand every vital aspect of EMS, something that hopefully this article covers.
About Electronic Manufacturing Services
Electronic Manufacturing Services (EMS) refers to various services that may include engineering design, PCB fabrication, subassembly manufacturing, turnkey or box building, functional testing, distribution, and order fulfillment on behalf of OEM (Original Electronic Manufacturers). Electronics manufacturing companies may be utilized as either a supplement or as a replacement of company-owned manufacturing operations.
With RayMing as your electronics assembly partner, you will benefit from our experience as an electronics manufacturing company for over ten years. We are proud to attest that our policy as an electronic contract manufacturing company is to provide the finest instrument solutions and related services that will meet or exceed your expectations of quality and workmanship – on time and within budget.
Benefits of Electronic Contract Manufacturing
Electronic contract manufacturing has been known historically to reduce supply chain costs dramatically by up to fifty percent. ECM has made it possible for companies to shed all or most of their internal manufacturing facilities, thereby freeing their valuable company resources for other productive business purposes. In some cases, electronic contract manufacturing has enabled companies to operate without the need for internal manufacturing capabilities or internally-managed factories.
Many companies may choose to outsource their well-established, long standing products to an electronic contract manufacturer. Outsourcing allows the companies to focus on internal operations on developing newer and more efficient products, which may have higher margins.
As an electronics manufacturing services provider, RayMing Technology is offering a full electronic manufacturing solution.
Every electronic assembly contract manufacturer starts with a production launch team configured for the specific project. The team consists of project managers, project engineers, production manager, QA engineers, procurement manager, and shipping manager. The launch team develops the requirements for each step, define the supporting tasks, and schedules the necessary resources. Product quality assurance is embedded in each pre-production step to ensure smooth quality control during the whole electronic manufacturing process.
Our electronic manufacturing capability includes:
Supply Chain Management
Metal Stamping and CNC Machining
Electronics, PCB Board, Surface Mounting
PCBA Testing – ICT Test and FCT Test
EMS contract manufacturing capacity: 6 MILLION POINTS per day
What is the difference between OEM,ODM, and EMS?
- Name explanation
- EMS: Electronic Manufacturing Services
- OEM: Original Equipment Manufacturer
- ODM: Original Design Manufacturer
- Difference between OEM, ODM, and EMS
- OEM (Original Equipment Manufacturer) is a pure manufacturer.
- ODM (Original Design Manufacturer) includes OEM and partial designs.
- EMS (Electronics Manufacturing Services) is a foundry provider that provides a series of services.
Electronic manufacturing services (EMS) refer to manufacturers that provide a series of services such as manufacturing, procurement, partial design, and logistics for electronic product brand owners.
In other words, ODM has more new elements than OEM. In addition to doing the things that ODM and OEM can do, the current EMS is more logistical and even assists in customer sales. This is the general EMS.
OEM means “original design manufacturer,” which refers to a company designing and manufacturing a product according to another company’s specifications. After a manufacturer designs a product, another manufacturer might use it or slightly modified some designs (such as button positions) to manufacture. The biggest advantage of this is that the other manufacturers reduce their own development time.
A computer company, such as HP, wants to make specific specifications for a notebook computer to market. They will specify the appearance requirements, like the size, screen specification, input/output ports, the front tilt of the keyboard, the shape and color of the computer bag, and the speakers’ location. They also usually specify the main internal details of the product, such as the technical specifications of the CPU or video controller. However, they do not design drawings, specify the type of switching transistor used in the power supply, or select the frequency of the backlight converter. These are the jobs of ODM.
ODM designs and produces notebook computers according to the specifications proposed by computer companies. Sometimes, ODM can also work with existing samples. ODM tends to pay more attention to cooperation. In the case of OEM, the buyer does not participate in the specific specifications of the product.
The difference between ODM and OEM
The main difference between OEM and ODM is that OEM is the product design plan proposed by the client. No matter who completes the overall design, the entrusted party shall not provide a third party with a product that adopts the design. The ODM is completed by the manufacturer from design to production, and the OEM will buy it after the product is complete. Whether the manufacturer can produce the same product for a third party depends if the OEM buys out the design layout. OEM products are tailor-made for a specific brand. After production, only the brand name can be used, and the manufacturer’s name must not be used for production. In the case of ODM, it depends on whether the brand company has bought out the product’s copyright. If not, the manufacturer has the right to organize production independently, as long as there is no corporate design identification.
In brief, the difference between OEM and ODM lies in who owns the product’s intellectual property rights. If the client has the product’s intellectual property rights, then it is OEM, which is commonly known as “foundry.” If it is the manufacturer’s overall design, it is ODM, commonly known as “OEM.”
In industrial society, OEM and ODM are common. Because of manufacturing cost, transportation convenience, and saving development time, well-known brand companies are generally willing to find other OEM or ODM manufacturers. When looking for OEM or ODM, well-known brand companies have to bear a lot of responsibilities. After all, the product is labeled by its brand. If the product’s quality is not acceptable, some customers will complain or even take legal actions. Therefore, brand companies will carry out strict quality control during the commissioning process. But after the OEM, the quality cannot be guaranteed.
When merchants state that the manufacturer of a certain product is an OEM or ODM, do not expect a similar quality as the original brand. The only thing you can compare is that the manufacturer has a certain production capacity.
OEM -ORIGIN EQUIPMENT MANUFACTURING
ODM -ORIGIN DESIGN MANUFACTURING
OBM -ORIGIN BRAND MANUFACTURING
The basic meaning of OEM (Original Equipment Manufacturer) is product development and manufacturing according to the original company (brand company) entrusted contract, using the original company’s trademark, cooperative operation, and production method. Some well-known brand-name commodity manufacturers often turn to other manufacturers for help because their factories cannot meet mass production requirements or need specific parts. These vendors who offer this support are called OEMs (Original Equipment Manufacturers). For example, CPU fans are not produced by Intel or AMD. They usually find professional motor manufacturers like Sanyo Corporation for fan OEM production.
ODM (Original Design Manufacturer) is the original developer making major improvements and modifications to the customer’s products at their request. It involves major changes in the mechanical structure, circuit structure, and software function. It could even be redesign according to customer needs. This process of manufacturing products belongs to the category of ODM. But like OEM, the products are labeled with the customer’s company’s trademark and sold by the customer company. After a particular manufacturer (ODM) designs a product, it may be favored by manufacturers of other brands, requiring the latter’s brand name for production, or slightly modifying some designs (such as Key position) to manufacture.
The biggest advantage of this is that other manufacturers reduce their own development time. Some people also habitually call these products OEM, but in fact they should be called ODM (Original Design Manufacturer). For example, some Japanese brand notebook computers are actually manufactured by Taiwanese manufacturers. Afterwards, Taiwanese notebook computer manufacturers only need to modify certain design details or accessories to mass-produce under their own brand names. The reason is that they do ODM rather than OEM for these Japanese brands. Of course, we can say that they are all produced from the same production line.
OBM (Original Brand Manufacturer)
Party A is interested in Party B’s products and lets Party B produce them with Party A’s trademark. For Party A, this is called OEM. Party A brings its own technology and design and allows Party B to process it, called ODM. For Party B, it is only responsible for producing and processing another company’s products and then affixing other people’s trademarks. This is called OBM. The products produced by Party B do not have their own brand, and they specifically accept other companies’ OEM or ODM requirements for the production.
OEM, ODM, OBM, different profit models
1. Enterprises have different operating methods and profit models at different stages. One operating method cannot run through all stages of enterprise development. From OEM (Original Equipment Manufacturer) to ODM (Original Design Manufacturer) to OBM (Original Brand Manufacturer), theyare needed in enterprise development.From a development point of view, when the company’s OEM business method and low-cost strategy can not be carried out, then you think of ODM, and your strategy will become more sound.
2. There are different stages of enterprise development, including entrepreneurship, development, maturity, decline, etc. Enterprisespartnerwith large companies to create OEM production, making the market relatively stable and obtaining excellent exercise and development opportunities. But OEM has its limits. When OEM reaches a certain size, its manufacturing level is relatively mature, and the technical level has reached a certain extent. As a result, the entrepreneurial enterprise has entered a relatively stable stage. If the business method is not reviewed or modified, it is difficult for companies to achieve explosive growth and be innovative. Mature companies must actively implement the strategy of technological innovation and brand success. Therefore, going from OEM to ODM is necessary and a positive choice to meet challenges and hold on to the competitive edge.
3. OEM is not going anywhere. It is still an excellentsurvival and development model for some small enterprises. OEM is only not suitable for more mature companies, determined by the company’s development stage.Many OEM companies in developing countries have to gradually change this business model at a particular stage, including Taiwan. When OEMs mature, they must actively transition to ODM and OBM. It is the inevitable division of labor in the world economy.
4. The links with large profit margins in the value chain are mainly concentrated in the technology market. Therefore, ODM and OBM are the strategies and business methods that every company hopesfor. However, the implementation of ODM and OBM requires a lot of investment, and the risk is high. Generally, small enterprises do not have the qualifications and conditions to implement ODM and OBM. OEM is a better way to start a startup. Due to their lack of funds and weak anti-risk capabilities, those small businessescannot withstand market shocks. Actively looking for OEM markets to allow the companies to survive and develop has become the right choice in their entrepreneurial stage.
5.In essence, OEM, ODM, and OBM are different business methods and profit models. From OEM to ODM to OBM, it is an inevitable division of labor between large and small companies, companies at different stages of development, andrisk appetiteafter weighing profit and risk. Mature enterprises have robust technology and market, and some or all manufacturing is outsourced. This is not only the result of maximizing profit but also the division of labor.
6. From OEM to ODM to OBM, it is a development model of an enterprise. It is a company with different operating methods and profit models at different stages of development. It is also an inevitable choice for companies to pursue sustainable development. This is to meet the challenge, create value and obtain profit actively.
7. In the process of OEM to ODM to OBM, enterprises must gradually transition, create conditions, and cross-over develop, backed by mature business, step by step, positive and stable, be innovative,develop higher-level business methods and profit models.
8. It is necessary to realize that the operation mode and profit model of ODM and OBM have very high requirements for human resource management, which posea challenge to human resource development and management in the economic society. There must be a qualitative leap in the enterprise’s talent managementoperation, knowledge management mechanism, and corporate culture construction. Without the talent management system’s support, ODM and OBM cannot operate to their full potential even if they are financially equipped.
9. Through the transition and transformation from OEM to ODM to OBM, at the maturity stage of ODM and OBM, you will find that your competitive territory and profit model have been re-divided and restructured. This is a spectacular sight for successful companies.https://www.raypcb.com/contact/
Electronic manufacturing cost accounting and control
The cost accounting process of the electronics industry is complicated. The reason as following:
First is the materials used are complicated. There are many types of materials used in electronic products, ranging from 10 to 20 types, and potentially be as many as thousands or more.
The second is that electronic products are a typical multi-step production and processing flow. A product often has to go through multiple processes, and there are many semi-finished products, which means that the cost accounting of semi-finished products is relatively high.
Third, electronic product manufacturers often involve entrusting outsourcing companies to process parts and components. Some companies have almost all parts processed by outsourcing companies, and their own companies only carry out the main assemblies.
Fourth, there are many types of PCBA products and complex process flow. When the management level of the enterprise cannot keep up, it will make the electronic manufacturing cost calculation inaccurate. For example, the material logistics are not well organized. The components’ costs are not well defined, and it will likely exceed the cost estimate and even deviate from the actual solution!
To accurately calculate the electronic manufacturing cost of a company’s products, it is necessary to have a clear understanding of the company’s material flow. This is the basis for cost accounting, especially for products that require multi-step production and multi-process flow. If you don’t understand the flow of materials, you don’t know the order of cost carry-forward, you cannot perform the correct cost accounting and carry-forward.
In my opinion, to prepare correctly and efficiently complete the cost accounting work, we must first have a clear idea of the entire material flow, what products each material can produce and what materials are used in the product. Then it is necessary to understand some details. If an enterprise has higher management needs, this kind of detail is even more difficult. Every small thing is the cornerstone of the cost, and you don’t pay attention to them, the overall cost will encounter trouble in the calculation, such as stagnating work!
The following section will introduce the electronic company’s cost processing in accounting entries combined with a flowchart. The electronics company is a subsidiary of a group of companies, and its main products are audio players and radios, and its product sales are mainly for export.
Let’s take a finished audio player as an example: The composition of its products can be divided into three main parts. 1) The movement, mainly responsible for the normal operation of the tape. 2) The substrate, mainly responsible for the related operations of data processing and signal decoding. 3) Injection molding, mainly for appearance beautification, parts support, etc. The cost calculation of the semi-finished product of the movement is relatively simple because it mainly assembles related parts into a mechanical system. The substrate technology process steps are more complex. Taking the circuit board (bare PCB board) as the starting point, insert resistors and capacitors, and do immersion tin reinforcement.
The electronics industry is mostly labor-intensive industries. Most of the production is carried out manually, and the high-tech electronics industry is different. For example, the production of computer motherboards can only rely on fully automatic placement machines to complete the assembly work, which cannot be done manually. If it is a small number of placements, it may be done by the electronics assembly factory itself. Otherwise, it will be sent to another placement factory for components assembly.
After the circuit board components plug-in is completed, it goes to the next process (or first enters the plug-in semi-finished product warehouse and then leads to the next process) for backhand welding processing. Backhand welding refers to a small number of electronic components that are not easy to complete in the previous process. Because the circuit board has to be tin immersed after inserting various resistances and capacitors, the tin immersion is a short immersion in high-temperature liquid tin water to fix the circuit board’s electronic components. Due to the high temperature, some components can only be completed by separate welding.
After a piece of backhand welded board passes the quality inspection, it can be put into the finished substrate warehouse to manufacture the finished machine.
The processing of injection molded parts first starts from the injection molding plant. Related molds process the plastic pallets (outsourcing parts) in the injection workshop to become plastic parts with the required structure and shape. Some plastic parts can go directly to the silk spray factory for painting and silkscreen processing. Some plastics must first enter the electroplating factory for electroplating and then into the silk spray factory for screen printing.
When the above three parts are available, the final product machine can be assembled. After the finished product assembly is completed, it enters the packaging group for final packaging.
The above is a general explanation of the electronic product’s process. Check the flowchart. An accountant who has been engaged in cost accounting should understand it quickly. Of course, it may seem a bit difficult for people who don’t know much about cost processing or have no practical experience. The graphical representation is drawn in consideration of the cost accounting process. The outgoing categories in the figure are directly related to cost accounting. There are many other outbound categories, such as departmental transfer, repairing, proofing, etc. It is necessary to clarify the outbound category, which directly relates to the composition of product costs.
The following describes the cost carry-forward with accounting entries based on the actual organizational structure of this electronic company. The first thing to understand is that this company is the operation unit of the group. There are many subsidiaries under the group, and each subsidiary is composed of multiple branches. The entire group implements an independent accounting system. Each branch within the group must conduct its own revenue, cost, and profit accounting. The internal group is similar to market operation. The only difference is that there is no external representation, and it is not equivalent to a general division. Of course, it is not an independent legal entity. Each branch within the group has a certain degree of independence and interest-driven. The production and processing services between the factories are settled based on the settlement unit price agreed by both parties. The company and its subsidiary factories form a contract assembly relationship, which is different from the production relationship of a public company.
This difference is reflected in the cost processing as commissioned processing. The difference between the standard production process and this commissioned processing process in terms of cost processing is mainly reflected in the following: First, when materials are issued, the company is listed under the subject of entrusted processing materials, while ordinary production materials used should be listed under the subject of production cost-basic production cost. Second, since it is a commissioned processing relationship, there is an internal processing settlement fee. Third, to control factory materials consumption, it is necessary to determine a loss rate in advance for the materials sent out. On the one hand, it reduced the cost of the company’s products. On the other hand, it is also to promote the cost reduction of various factories.
Based on the above understanding, now use accounting entries to explain the logistics cost carry-over order and process. Please note that this example does not consider tax issues.
1. Storage of purchased parts:
First, after the supplier’s goods arrive at our company, they must enter the warehouse, and the relevant personnel will carry out the incoming checks. Before acceptance, it is not treated as the accounting for purchase and storage, and the materials are only used as escrow. Once accepted, the outsourcing materials are transferred to the warehouses of the relevant factories. Most products’ materials are purchased by the company but placed in and managed by the factory, mainly for the convenience of production and use.
The accounting entries for the storage of purchased materials are:
DR: Raw materials, main materials, purchased parts (due to computerized processing, the general ledger account does not have a classification account for related materials)
CR: Accounts payable-XX company (group outsourcing)
CR: Internal contact-XX factory (group purchase)
2. Processing of semi-finished products:
Since there are more semi-finished products and costing processing, accounting entry methods are the same, but the specific costing process will differ. Here is an introduction.
Calculation of the cost of injection molding parts: The process of injection molded parts is the process of making cakes, breads, dumplings, and other products from flour. There are not too many types of raw materials, but products can be made in many forms. For the collection of costs, one of the basic cost calculation methods is to allocate according to the standard amount of materials. For example, cakes use type A flour. Each type of cake has many different styles, and each cake will have a standard dosage. The A flour will be allocated in all products produced according to the corresponding theoretical amount (theoretical amount = standard unit rationale * actual output). If the bread also uses the A flour, or the bread uses A type flour but also B type flour, the bread should be calculated according to the proportion of the flour used. This costing method may have some shortcomings. Compared with the increase in the abnormal consumption of a certain product, if the previous standard consumption is used to calculate, there will be a cost deviation.
In the processing of movement and substrate, the material cost can be collected according to the cost objects of the material used. Before the material is issued, it is already determined what it’ll produce. The cost calculation is based on the financial software outbound warehouse + receiving and dispatching category + cost object for processing. Because the cost object is used in the actual computerized operation, the input volume of the recorder will increase, so some can be used purpose to replace the input method of the cost object, but make sure that the cost object of a material outbound order is the use of a product. Otherwise, the cost of materials will be incorrect!
Electroplating and silk spray processing can be grouped into objects of semi-finished products. Most of this processing is a one-to-one relationship, but there is also a one-to-many relationship, a product with shared parts. Multiple subsequent processes can produce one semi-manufacture product. If such a situation occurs, appropriate allocation operations must be carried out according to the quantity.
In the final product processing, material delivery is based on warehouse + delivery category + cost of the object. Since the final assembly of finished products will use more common parts, it is not suitable to replace the cost object recording method.
The accounting entries for processing and issuing materials are:
DR: Outside processing materials-XX factory-material costs
CR: Raw materials-main materials-purchased parts
CR: Semi-finished products
3. Finished product materials/finished products warehousing
Since the company implements independent accounting, the company should calculate the corresponding processing fee based on the quantity of semi-finished products delivered to the warehouse. Simultaneously, this part of the processing fee should be included in the cost according to the corresponding product. The entry is as follows:
DR: Outside processing materials-XX factory-processing fee
CR: Accounts payable-XX company (outsourcing processing )
CR: Internal transactions-XX factory (processing within the group)
In addition, it needs to calculate the material profit and loss. According to the product processing loss rate agreed in the pre-processing contract, confirm whether the authorized processing party has a surplus of the material used or over-used the material. If it is a surplus, the other party shall be compensated according to the material cost (or fixed unit price signed in advance). If the other party has overused, the corresponding processing fee shall be deducted. The material cost calculated by the profit and loss account is used to adjust the product cost material. The entry is as follows:
DR: Commissioned processing materials-XX factory-material costs
CR: Accounts payable-XX company (outsourcing processing)
CR: Internal transactions-XX factory (processing within the group)
Carryover the cost of the product while the material is in storage, the entries as follows:
DR: Semi-finished products/finished products
CR: Commissioned processing materials-XX factory-material costs
CR: Commissioned processing material-XX factory-processing fee
4. Issues to be paid attention to in cost accounting:
1) . The accuracy of the product cost calculated by cost accounting is primarily related to the enterprise’s management level because the cost processing is based entirely on the document data. It is difficult for an enterprise with poor management to have proper and accurate production material consumption documents. Without these necessary data, the cost calculation can only be estimated. The more detailed and comprehensive the cost is, the more it is necessary to have a complete document control process. The items recorded in the document must be complete and accurate.
2) . It is common for companies to get materials confused.If the production staff does not have good management and control methods, the cost accounting will also be affected. That is to say, if the company is weak in this aspect, it is necessary to rely on the accountant to strengthen the understanding of this situation. The accounting treatment can minimize the differences.
3) . Nowadays, most companies carry out complex cost accounting, mostly with computers, which brings great convenience to cost accounting. Still,it is necessary to clarify the type of material being received and dispatched in advance. There are two main types of outbound materials: production requisition and processing requisition. The essence of these two outbound methods is the same. The materials issued by these two methods will constitute the entity of product cost, and all the materials issued will be recorded in the corresponding products of the current period. If the outbound category is disorganized, or the outbound category is used indiscriminately in the billing business, the composition of cost materials will be incorrect.
How to evaluate an electronic assembly contract manufacturer?
We usually call the “electronics foundry” EMS (Electronics Manufacturing Service) or CM (Contract Manufacturer). To evaluate an electronic foundry, whether it is evaluating an SMT or a complete machine, there is a six-character formula of TQRDCE. This six-character formula can help reviewers consider questions in multiple aspects.
T: Technology: It depends on the technology of this factory and whether it meets the needs
R: Responsiveness: Whether the factory responded promptly and correctly to customer’s inquiries.
D: Delivery: Delivery date of the product.
C: Cost: Is Cost reasonable?
Generally speaking, the evaluation of a foundry cannot be done by a single person. Usually, at least procurement personnel, business personnel, engineering personnel, and quality control personnel should be present because different personnel positions have different concerns. Purchasing personnel and business personnel focus on the price and delivery of products, while engineering personnel focuses on technology, process capability, and equipment. Quality control personnel focus on product quality control, responsiveness, and environmental aspect. Everyone should pay attention to it. The items that need to be checked when evaluating an SMT foundry are listed below for reference only. These items are the basis for scoring. Most companies have different assignments according to the needs of individual companies.
Is there any advanced manufacturing process, automation, and other equipment? Are there any process innovation capabilities? Is it capable of introducing new processes in the market?
PCBA Manufacturing capability evaluation:
- BGA IC’s repairability
- 0201 parts welding and repairability
- ROHS enforcement
- SOP integrity
- How to work with special-shaped parts
- How to operate the component part by tube packaging
- How to operate the component with tray packaging
- How to avoid wrong materials and reverse polarity
- Is there any guidance for circuit board design for customers’ reference
- Do they have the ability to review the circuit board design and provide DFM (Design For Manufacturing)
- MSL (Moisture Sensitivity Level) parts control capability
- Solder paste temperature recovery, unpacking, and shelf-life control capabilities
- Panel process (de-panel process)
- The accuracy of solder paste printer
- Solder paste thickness inspection machine
- SMT pick&place machine accuracy
- X-Ray inspection machine
- Is there AOI (Automated Optical Inspection)
- ICT test equipment (Agilent3070, GenRad, TR5000)
Are there any factory certifications? Such as ISO, TS… etc.
Have you imported statistical production (SPC), such as Cpk control of part size, production control chart?
Are there ongoing quality control improvement? QCC or TQM
ECO (Engineering Change Order) engineering change management
Is there any part waive control?
Is it possible to notify customers in time and keep in touch with them if any quality problems are found?
Quality control evaluation
- Components incoming inspection records and management
- SMT yield
- Response to customer complaint
- File management
- BOM updated
- ESD anti-static execution
- Check if the instrument is calibrated
- AML&AVL management AML:Approved Materials List AVL:Approved Vendor List
Can the questions asked by customers be answered quickly within 24 hours?
Is it possible to keep in contact with the customer in time for new orders?
Can the production capacity be quickly expanded when the customer has an urgent order?
When the customer’s engineering data changes, how fast can I respond? How quickly and how to deal with customer complaints?
Delivery time meets company required
Follow up the shipment and keep in contact with the customer
Continuous improvement for the price reduction
Is the quotation listed in all details?
Do you recognize the environmental impact of the factory and take action?
Do you try to meet environmental requirements from the beginning of product design?
Do you try to improve the impact on the environment from daily work?
China Electronic manufacturing services industry
1. The global market is expected to reach US$980 billion in 2021
Electronic manufacturing outsourcing is covering more and more industries. With the development of the outsourcing business model of electronic manufacturing and the continuous improvement of the service capabilities of OEM service manufacturers, the global electronic manufacturing OEM industry has more and more service areas, and the total amount of outsourcing is increasing every year. At present, electronic manufacturing foundry services have covered many fields such as household appliances, network communications, consumer electronics, automotive electronics, medical equipment, and aerospace.
Major global electronic brands have begun to outsource their products. With the increasingly fierce competition in the electronics industry, brand owners have to sustainable development by outsourcing their electronics manufacturing business to further focus on their superior industries and enhance their competitiveness. The world’s large electronic brands have become the service targets of electronic contract manufacturing services companies.
In 2020, the total global electronics manufacturing outsourcing totaled US$647 billion. The industry is expected to maintain a relatively high expansion rate. By 2021, the industry’s operating income will reach US$872.3 billion.
2.The growth rate of domestic electronics manufacturing foundry service business leads the world.
Major global electronics manufacturing foundry service companies have all entered China. In recent years, mainland China’s electronics manufacturing industry has developed rapidly, especially for medical PCB assembly. With its significant advantages such as an investment opportunity, high-quality management, technical personnel, and cheap labor, it has become a key area for the migration of the global electronics manufacturing outsourcing business. For example, Foxconn, Flextronics, Jabil, and other leading electronic manufacturing foundry service companies have invested and set up factories in Mainland China.
China is becoming the main production base of global electronics manufacturing. With the entry of international companies and the rise of local companies, mainland China has become the most important area for the global electronics manufacturing outsourcing business. China’s electronics industry has a vast domestic market and a major global manufacturing country for electronic products. China is becoming one of the leading production bases for global electronics manufacturing, and this has promoted the rapid growth of China’s electronics manufacturing industry.
According to statistics from the Ministry of Industry and Information Technology, in 2020, the country’s electronic information industry sales revenue is 18.5 trillion CNY, a year-on-year increase of 13.5%.
The growth rate of the domestic electronics manufacturing foundry industry is higher than the global average. It is predicted that China’s share of the world’s electronic information industry market will increase from 18.83% in 2020 to 20.31% in 2021. China’s overall electronics manufacturing operating income will continue to grow, reaching 414 billion U.S. dollars by 2020, with a compound annual growth rate of 8.2%, higher than the world average.
The growth rate of the domestic electronics manufacturing foundry industry is higher than the global average. It is predicted that China’s share in the world’s electronic information industry market will increase from 18.83% in 2020 to 20.31% in 2021. China’s overall electronics manufacturing operating income will continue to grow, reaching 414 billion U.S. dollars by 2020, with a compound annual growth rate of 8.2%, higher than the world average.
3.The industry competition pattern is conducive to domestic secondand third-tier manufacturers
The domestic electronic manufacturing services industry has made significant progress in recent years, and this growth is mainly due to the transfer of global electronics manufacturing capacity to China. Although local enterprises are still in a weak position in the competition with foreign-funded enterprises, the vast domestic consumer market, growing technical and management personnel, and abundant low-cost labor will provide a suitable environment for the sustainable development of local enterprises.
In network communication terminal equipment and portable consumer electronic products, local companies are expected to achieve more remarkable development. According to the survey, the total revenue of the second and third-tier manufacturers in the global electronics manufacturing foundry service industry in 2020 has increased from US$19.1 billion in 2015 to approximately US$45 billion. A certain proportion of the market share is occupied by some local Chinese companies with scale advantages and comprehensive service capabilities. These local companies are expected to achieve rapid growth in the next few years and become major manufacturers in the domestic electronic manufacturing services industry.
4.The profit rate of the industry will remain stable
The gross profit rate of the global electronics manufacturing service industry is about 5% to 10%. The EMS industry’s gross profit rate is currently basically stable at 5% to 8%, and the gross profit rate of the ODM industry is at the level of 5% to 11%. In the next few years, the above gross profit margin will be around the current level.
At present, the domestic electronic manufacturing companies’ service has the advantages of low labor costs and low rental costs. The average gross profit rate of PCBA company is slightly higher than the global average. The gross profit rate of domestic superior electronic assembly companies is estimated to reach more than 10%. The gross profit margin of ODM companies is slightly higher than that of EMS companies among them. It is expected that the profit level of the domestic electronic manufacturing services industry will remain relatively stable in the next few years.
Top 30 Electronic Manufacturing Services Group in the World
Consumer electronics are in high demand all over the world. The demand goes to show how important electronic appliances and gadgets are to people.
In the current technological state, electronics of different kinds are used for a variety of purposes. And Printed Circuit Boards (PCBs) are required to make the electronics to be as functional as possible.
When you want to build a circuit board, you don’t just outsource the design to a manufacturer that doesn’t worth the onion as far as circuit board production is concerned. Instead, you want to hire the services of professional electronic manufacturing services that will provide most of the services you want.
What is electronic contract manufacturing ?
Also called Electronics Contract Manufacturing, this type of circuit board production involves PCB companies and manufacturers that design, manufacture, test, and distribute Printed Circuit Boards (PCBs).
Electronic contract manufacturing companies also provide repair and maintenance services to ensure that the manufactured circuit boards are working as they should.
OEM vs. EMS: The Difference between the Two
Many PCB consumers have been wondering about the difference between Original Equipment Manufacturing (OEM), and Electronic Manufacturing Services (EMS).
Contrary to the opinion held by some people, the two are different. They are entirely different manufacturing procedures for Printed Circuit Boards (PCBs).
On the one hand, Original Equipment Manufacturing (OEM) refers to the development of PCB products. In this case, the circuit board manufacturer focuses on the innovation and development of important products used for PCB manufacturing.
On the other hand, Electronic Manufacturing System entails that a Printed Circuit Board (PCB) manufacturer will often outsource or gives out specific and tough aspects of the circuit board design to another manufacturer.
Thus, any manufacturer or company that provides electronic manufacturing solutions is primarily delegated to work on different aspects of the circuit board development, including:
- Component/parts sourcing
- Circuit board design
- Printed Circuit Board (PCB) manufacturing/production
- Testing the manufactured circuit board to be sure that it works
- Shipping out the completed circuit boards to the contractor the PCB manufacturer that outsourced the board design.
- Depending on the circumstance, the Electronic Manufacturing Services Companies may also offer return/repair and maintenance services on the circuit board.
Who are the Leading Electronic Contract Manufacturing Companies in the World?
The boom in the production and adoption of consumer electronics also means that more Printed Circuit Boards (PCBs) will be ordered for by many electronics companies all over the world.
Likewise, the electronic manufacturing services industry will receive its share of the money because of the influx of jobs.
While China may be one of the leading countries that manufacture circuit boards based on PCB contract manufacturing, it is not the only country.
Below, we have explained in-depth, the top 30 electronic contract manufacturing services providers that you can find in the world today.
The Hon Hai Technology Group (Foxconn) is one of the leading electronic manufacturing services companies in the world.
And when you are looking for experience and excellent circuit board design conditions, you are confident that Foxconn can deliver the kind of PCB quality you expect.
This PCB manufacturer started offering contract electronics manufacturing services as far back as 1974 when the company was established in Taiwan.
They focus on the production of:
- Cloud and networking products
- Circuit board components, such as automotive equipment, connectors, semiconductor products, optical components, and electronic components.
- Manufacturing smart consumer electronics, such as set-top boxes, feature phones, smartphone devices, television sets, wearable devices, audio systems, and game consoles.
- Production of computing products, including printers, computers, tablets, and laptops.
The Pegatron Corporation is another company that offers electronic manufacturing solutions. As they affirmed, the variety of services they are meant to provide one-stop solutions as far as Printed Circuit Board (PCB) designs are concerned.
As a globalized contract circuit board manufacturer and a major player in the electronic manufacturing services industry, Pegatron wants to create a system that will open to any PCB consumer to benefit from.
At the core of the electronic manufacturing solutions offered by Pegatron are:
- The integration of the downstream and upstream partners in the supply chain management system to satisfy the circuit board demands of the customers.
- Continual innovation and transformation of the electronic manufacturing design processes as a way of being one step ahead of the competitors.
- Multiple contract manufacturing product developments, including Smart Electronics, Computer Products, Communication Products, Car Electronics, and Consumer Electronics.
Flextron is committed to designing, manufacturing, testing, and shipping electronic and consumer products that the consumers will find useful. This manufacturer believes that by diversifying the circuit board design and building them the right way, it would be a lot easier to create the much-desired value in the lives of the consumers.
Flextron is on the list of electronic contract manufacturing services because of many reasons, including:
- They are versed in circuit board product design and engineering expertise, which makes them highly sought-after.
- Flextron doesn’t just focus on the present. Instead, this circuit board manufacturer goes the extra mile to find out the potential innovations in the electronic manufacturing industry so they can be ahead of the others.
- Leveraging of the domain and industry expertise to create technically advanced Printed Circuit Boards (PCBs) that will, in turn, be used across different industries.
- Their cross-industry experience makes it simpler for Flextron to design, manufacture and test contract manufacturing circuit boards that will work well, irrespective of the industries where they are used.
Jabil believes in simplifying the processes of manufacturing Printed Circuit Boards (PCBs). This circuit board designer uses an advanced electronic manufacturing system to innovate, design, manufacture, and deliver the contract circuit boards you ordered for.
They have continually expressed optimism to become one of the most technologically advanced and trusted electronics manufacturing solutions provider.
Among the many electronic contract circuit boards manufactured by this company are:
Jabil does an excellent job to manufacture Printed Circuit Boards (PCBs) that would be used to increase the performance of automotive products.
Jabil is perhaps one of the first electronic contract manufacturers that looks beyond the circuit board industry.
Now, they manufacture circuit boards that can be used to make our homes smarter. The concentration is on manufacturing a wide range of devices that would be used to automate, control and monitor individual homes.
The Wistron Corporation is one of the biggest suppliers for both communication and information products.
This contract manufacturer takes advantage of their many years of experience, as well as their product research, product design, circuit board manufacturing, and after-sales services to deliver quality and functional Printed Circuit Boards (PCBs).
Some of the reasons why you want to outsource your contract circuit board production to Wistron are:
- This manufacturer offers global operations, which means that they are always ready to provide in-house circuit board contract manufacturing in any part of the world.
- Deep experience in circuit board development.
- Integration of current products and technologies to manufacture contract Printed Circuit Boards (PCBs).
- Certification of safety
- Maximizing the benefits of the circular economy by using environmentally-friendly contract manufacturing services.
- Provision of full-range contract manufacturing services, including Post-Production Orders (BTOs) and Assembled Orders (CTOs).
Leading Original Equipment Manufacturers (OEMs) trust Sanmina with their PCB contract manufacturing because the latter manufactures complex circuit boards, and manages the supply chain systems.
This manufacturer also has 20 years of experience manufacturing contract electronics. At a time that some circuit boards fail, it is impressive to see that Sanmina reduces that by providing precision machining for circuit boards.
The wide range of electronic contract manufacturing services offered by Sanmina can be used in different industries.
Some of the industries served by the manufacturer include:
- Computing and storage
- Medical systems
- Clean technology
- Oil and gas
- Defense and aerospace
- Automotive industry
- Communications networks
Sanmina Electronic Contract Manufacturing Services
Sanmina also offers a variety of PCB contract manufacturing services for the different industries they serve.
The most popular of these electronic manufacturing solutions are:
- Quick turn prototyping
- Supply chain management
- One IT system
- Circuit board design and engineering services
- Printed Circuit Board (PCB) testing
- Surface Mount Technology (SMT)
- New product introduction
- Systems manufacturing and
- Printed Circuit Board Assembly (PCBA)
Celestica is unlocking the future of electronic manufacturing solutions by imagining, developing, and delivering the type of circuit boards the customers want.
This North American-based contract manufacturing company leverages its unrivaled customer-centric business approach to partner with some of the leading electronics brands in the world.
They are committed to providing full-scale and in-house PCB contract manufacturing solutions, including:
- Designing and engineering
- Precision machining
- Logistics and fulfillment
- Supply chain services
- Product licensing services
- Hardware platform solutions and
- After-market services
Most times, PCB consumers have to pay additional sums of money before their finished circuit boards can be shipped.
That isn’t necessarily the case when you hire Celestica, because this electronic manufacturing services group Inc. goes the extra mile to offer you unrivaled fulfillment and logistics solutions.
That is in addition to the innovative supply chain management strategies that offer excellent solutions that would boost market share and profit for the consumers.
8. New Kinpo Group
Established in 1973, this Taiwan-based electronic manufacturing services group is committed to helping you achieve anything you want, as far as electronic contract manufacturing is concerned.
New Kinpo Group offers both Original Design Manufacturing (ODM), and Electronic Manufacturing Services (EMS).
That implies that circuit board manufacturers can outsource their entire PCB projects to this company to handle it from start to finish.
New Kinpo Group also runs many publicly listed companies that are listed under the New Kinpo Group.
Some of these companies and their capabilities are listed below:
- XYZPrinting for 3D printing on circuit boards
- Kinpo Electronics for PC Peripherals and consumer electronics manufacturing
- Cal-Comp Big Data for Big Data sourcing
- New Era AI Robotic for AI Robotics
- Cal-Comp Technology is based in the Philippines. This company’s capabilities include ODM, EMS, and JDM.
- AcBel Polytech is in charge of power management solutions
- CastleNet manufactures network communication equipment
- Cal-Comp Electronics based in Thailand manufactures ODM, JDM, and EMS
New Kinpo Group has many contract manufacturing capabilities that cut across circuit board conceptualization, manufacturing, and marketing.
As part of the continued efforts to move to Industry 4.0, New Kinpo Group has rolled out intelligent machinery and robotics to facilitate the production of circuit boards.
Worthy of mention is that New Kinpo Group also has a smart warehousing system that is bolstered by Automated Guided Vehicles (AGVs), which are powered by a Vehicle Control System (VCS) that transports materials and circuit boards across different warehouses, during the different stages of production.
9. USI Global
USI Global is one of the innovative electronic manufacturing services companies that provide full-scale and turnkey Printed Circuit Board (PCB) manufacturing services.
It is pertinent to mention here that this manufacturer places a premium on the important aspects of contract electronics manufacturing processes.
Their strategies for circuit board production include:
- Circuit board design
- Industrial software
- Hardware solutions
- Logistics and shipping
- Circuit board material procurement and
- Circuit board maintenance services
USI Global offers a wide range of Printed Circuit Boards (PCBs) that are manufactured for use in different industries all over the world.
Their PCB contract electronics solutions are used in the following industries:
- Automotive industry
- Wireless communication
- Medical industry
- Industrial and the
- Computing and storage industry
Turnkey Contract Manufacturing Services
If you want to design your circuit board in one place, it has to be with USI Global. This electronic manufacturing services group offers circuit board turnkey services that include:
- Material sourcing and RFQ
- PCBA and Box assembly
- Inventory management
- Supplier management and
- RMA service
10. Venture Corporation Limited
Venture Corporation Limited is on a mission to relentlessly pursue excellence in the development/design and manufacturing of circuit boards based on PCB contract manufacturing.
This manufacturer offers a value chain management ecosystem that is designed to fulfill the supply chain strategy of their strategic partners.
This manufacturer believes that contract PCB manufacturing should be a win-win for everyone. That is why they are ready to help you through the different stages of circuit board development.
Their electronic manufacturing solutions include:
- Research and development
- Product industrialization
- Advanced manufacturing of contract circuit boards
- Supply chain management and
- Product lifestyle management
They also manufacture a variety of electronic manufacturing products, including:
- Life science and instrumentation
- Advanced industrial
- Financial technology and
- Lifestyle/Consumer electronics
11. Plexus Corporation
Plexus Corporation will help you conceptualize your contract electronics manufacturing needs, and use that to manufacture circuit boards that will make real-world impacts.
They are committed to the process of electronic contract manufacturing, and that is why you should rely on them to manufacture circuit boards that have zero defects.
Also, Plexus Corporation does an excellent job of integrating design, engineering, and manufacturing support to deliver the visionary electronic products you want.
The product development cycle they offer cut across:
- Design and development to deliver even the most complex product designs
- Personalized supply chain solutions so that your finished electronic contract products can be shipped to you in real-time.
- Introduction of new electronic manufacturing products as a way of seamlessly launching new products, while resolving any issues that could cause delays for the product completion and launch.
- Manufacturing your contract electronics with zero defects
- Plexus Corporation also offers after-market services because they want to help you achieve a competitive advantage in the market while protecting your brand and the quality it is associated with.
Plexus Corporation manufactures contract electronics in the following market sectors:
- Aerospace and defense
- Industrial and
- Healthcare & life sciences
12. Benchmark Electronics
Benchmark offers a wide range of electronic contract manufacturing services that are geared towards providing premier experience and complex technologies that the PCB consumers will find useful.
This electronics manufacturing services provider goes about the business of electronics manufacturing by using the trio of innovative product design, advanced manufacturing systems, and obsessive attention to detail.
The in-house manufacturing solutions they offer include:
- Analytics and product research
- Precision engineering
- Electronic contract production
- Printed Circuit Board Assembly (PCBA) and
- Supply chain management
Benchmark Electronics manufactures contract electronics for the following use cases:
- Complex industrial solutions
- Next-generation communication
- Advanced technology solutions that overcome common challenges, such as power, size, reliable data collection, and building RF systems that can perform at high frequencies.
- Medical technologies, including equipping medical devices with unique capabilities
- Innovative semiconductor capital equipment processing
- Advanced computing applications, including design, manufacturing, and testing
- Provision of specialized systems for overcoming major commercial aerospace challenges.
13. Shenzhen Kaifa
Shenzhen Kaifa is one of the world’s leading Electronics Manufacturing Services (EMS) providers with a special interest in helping consumer electronics users to enjoy the best out of their electronics.
Likewise, this manufacturer helps consumer electronics manufacturers to manufacture the best electronics in the market, thanks to the innovative designs they offer.
Shenzhen Kaifa is popular for many reasons, and it is mostly because of its capabilities in the electronic manufacturing services industry.
Here are some of the inputs this Electronic Contract Manufacturing (ECM) company can make to make all the difference in your electronic contract products:
Research and Design
Shenzhen Kaifa can make in-depth researches and come up with analyzed solutions for manufacturing your contract electronics.
Supply Chain Management
Streamlining how electronic contract products get to you is also part of the capabilities of this electronic manufacturing service provider.
In line with the drive for Industry 4.0, Shenzhen Kaifa is also pushing for the use of Smart Manufacturing capabilities to bolster electronic contract manufacturing.
Last but not least – Shenzhen Kaifa offers Printed Circuit Board Assembly (PCBA) services as a way of simplifying the circuit board manufacturing processes.
The contract electronics capabilities of Shenzhen Kaifa are targeted at the following industries:
- Metering system and
- IC Packaging and Testing
14. Zollner Elektronik Group
Zollner Elektronik Group is a complex mechatronic systems service provider that offers comprehensive services in major aspects of the Electronic Contract Manufacturing (EMS) industry.
Founded in Zandt, Bavaria in 1965, this contract manufacturing company has steadily grown over the last couple of years to offers electronic manufacturing systems solutions that cut across sectoral divides.
In terms of their services, they win you over via the variety of electronic contract services they offer, including:
They offer both small and large-scale production of contract electronics. This gives you the option to have as many contract electronics to be designed for you.
This electronics contract manufacturing company also does an excellent job of ensuring that a majority of the electronics they manufacture is compliant with the statutory and customer-specific regulation of all the materials used in manufacturing contract manufacturing products.
Research and Development
Zollner Elektronik Group has a dedicated team of researchers who dig deeper into the kind of electronic contract designs you want to provide you with the best service.
The researches and subsequent development of these electronic contract products are also flexible, meaning that you are allowed to decide on the development phase of the project that you want to be involved in.
Zollner Elektronik Electronic Contract Manufacturing (EMS) Services
Zollner Elektronik Group offers electronic manufacturing systems in the following categories:
- Medical technology
- Automotive technology
- Industrial electronics
- Measurement technology
- Rail technology
- Aerospace and defense
- Data technology and
- A wide range of other consumer electronics
15. SIIX Corporation
The SIIX Corporation calls itself a “pathfinder in the Japanese Electronic Manufacturing Services (EMS) industry,” because the company has the wherewithal to manufacture contract electronics products even in the light of manufacturing changes in the global market.
Founded over 60 years ago, the SIIX Corporation is taking steps to provide multiple electronic contract manufacturing services that would include a one-stop service for component sourcing.
With over 50 outlets in 14 countries of the world, it is clear why the SIIX Corporation is highly recommended because they have a global network that will bring their electronic contract services closer to the target market.
Moreover, the SIIX Corporation doesn’t limit its target audience. Instead, the non-affiliation to any corporate group makes it flexible for this electronic contract manufacturing service provider to accept outsourced work from a wide variety of customers.
Fabrinet is a trusted partner of most of the leading Original Equipment Manufacturing (OEM) companies in the world.
They specialize in electro-optical, electro-mechanical, optical, and sophisticated electronic Printed Circuit Board Assembly (PCBA) process technologies to manufacture contract electronics.
The full range of services they offer cut across product design, prototyping, and final production of electronics.
Without much ado, let us look at some of the industry-leading capabilities that Fabrinet has as an advantage over the other competitors in the electronic manufacturing services industry.
Full Compliance with Quality and Regulatory System Requirements
Compliance with the quality and regulatory standards is very important. Fabrinet excels in that by complying with most of the requirements, including:
- AS 9100
- TL 9000
- TS 16949
- ISO 9001
- ISO 18001
- ISO 14001 and
- ISO 13485
The markets covered by Fabrinet are:
- Aerospace and defense
- Lasers and
Some of the electronic contract manufacturing services rendered by this company are:
- Water processing
- Printed Circuit Board Assembly (PCBA)
- Supply chain management
- Laser manufacturing
- Complex systems
- Microelectronics and sensors
- IP protection
- Process development and
17. UMC Electronics
UMC Electronics is a leading global semiconductor foundry that manufactures high-quality IC production. They place a premium on specialty and logic technologies when manufacturing electronics.
It is also pertinent to mention that UMC Electronics serves a wide range of markets, including the mobile and wireless communication industry where they are making conscious efforts to contribute to the advancement of the 5G technology.
The other markets that benefit from the electronic contract manufacturing offered by UMC Electronics are:
- IoT and wearable
- Computing and data processing
UMC Electronics also offers a wide range of backend services, such as:
- Product yield management service
- Turnkey solutions
- Testing services and
- Package solution development
18. Integrated Micro-Electronics
Integrated Micro-Electronics is the manufacturing branch of AC Industrials, Inc. which is also a subsidiary of the Ayala Corporation.
Integrated Micro-Electronics (also known as IMI), is one of the leading global technology solution companies that focus on providing both Electronics Manufacturing Services (EMS) and Power Semiconductor Assembly and Test Services (SATs).
Their global and universal PCB contract manufacturing services are geared towards using cutting-edge technology and a considerable amount of resources to manufacture quality electronics.
Without leaving anything to chance, IMI also keeps tabs on the latest technological innovations so it can be among the first electronic contract manufacturers to implement them in their new products.
Some of the capabilities of this electronic manufacturing service provider include:
In terms of engineering, Integrated Micro-Electronics (IMI) focuses on important aspects of the engineering processes, such as:
- Design and development
- Testing and systems development
- Advanced manufacturing engineering capabilities
- New product introduction and
- Camera vision technology
The electronic manufacturing processes used by this manufacturer include:
- Motorcycle assembly
- Precision machining
- Plastic manufacturing capabilities
- System integration and
- Many other manufacturing solutions
19. Kimball Electronics
Kimball Electronics believes that the “human side of technology starts with the people, and ends with the people.”
As such, they want to make the most out of every technological innovation by utilizing the best technological tools to develop quality electronics.
Thanks to the team of smart, passionate, and collaborative people, Kimball Electronics has been able to create thousands of electronic products that are appreciated by many people all over the world.
Electronic Manufacturing System
Here are some of the capabilities and inputs of Kimball Electronics towards the production of contractelectronics:
- Engineering and design services
- Diversified contract manufacturing services
- Supply chain management and
- Automation, testing, and measurement of electronic products
The following markets are covered by Kimball Electronics:
- Public safety
- Industrial and
20. PKC Group
PKC Group is a part of the Motherson Group. It is a tested and trusted contract manufacturing company that primarily focuses on the designing and manufacturing of different kinds of electronics for use in the global commercial vehicle industry.
The group combines both product quality and innovation to manufacture world-class products, especially electronics that improve the performance of commercial vehicles.
While PKC Group primarily concentrates on providing complete solutions for the commercial vehicle industry, it also extends the services to other sub-industries.
The other markets covered by this electronic manufacturing services company include:
- Off-road vehicles
- Passenger cars
- Farm and material handling equipment and
- Multi-utility vehicles
PKC Group Electronic Contract Manufacturing Capabilities
Some of the electronic manufacturing systems and capabilities of PKC Group are:
- Circuit checking
- Complete vertical integration for manufacturing critical wiring components, such as protectors, wires, relay boxes, connectors, junction boxes, terminals, and grommets.
- New Product Introduction (NPI)
- Electrical Distribution Systems (EDS)
- Electrical cabinets and power packs
- Manufacturing of specialized wiring harnesses for medical diagnostic equipment
- Production of battery cables
- Production of high-tension cords and
- Basic vehicle schematic
21. V.S. Industry
V.S. Industry (VSI) was founded in 1982 to be an integrated Electronics Manufacturing Services (EMS), provider.
Among the many reasons for establishing the company is:
- Manufacture electrical and electronic products and
- Designing, testing, and production of office and household electronic products.
V.S. Industry offers electronic consumers a wide range of products and services that include:
The array of services offered here cut across material/component sourcing, product design, and logistics solutions.
This electronics manufacturing service provider also offers one-stop manufacturing solutions that include:
- Printed Circuit Board Assembly (PCBA), Electronics and Mechanics manufacturing.
- Supply chain management
- Mould design and fabrication
- Plastic injection and finishing processes
- Product design
- Final assembly, box building, and testing of electronic products.
Sumitronics is a part of the Sumitronics Corporation. They are committed to helping you create your next step in the electronics manufacturing industry.
The most significant of their services is the strong support for a wide range of electronic solutions, including Design Support, Component Sourcing/Procurement, Manufacturing of electronics, and Logistics/real-time delivery of electronic products.
Sumitronics Electronic Manufacturing Services
Sumitronics specializes in manufacturing a wide range of electronic contract manufacturing services that include substantial support of your overseas production development.
Some of the electronic manufacturing solutions they offer are:
- Optimized logistics
- Global procurement
- Meticulous and substantial support for your electronic products and
- Excellent electronic manufacturing product system
Asteelflash is a leading Electronic Contract Manufacturing (EMS) company based in Greater Paris Area, France.
Since 1999 when it was founded, Asteelflash has consistently grown to become one of the most preferred contract electronics manufacturers.
As part of their continued efforts to advance in the Electronic Contract Manufacturing (EMS) industry, Asteelflash made several acquisitions.
Some of the acquisitions and their timelines are detailed below:
- Acquisition of MRP, a UK-based local electronics contract manufacturer in 2008.
- Acquisition of Flash Electronics in 2008.
- Asteelflash acquired TES Electronics in 2011.
- Acquisition of Electronic Network in Germany and the Czech Republic in 2012.
Asteelflash offers the following PCB contract manufacturing solutions:
- Artificial intelligence for supply chain management
- Printed Circuit Board Assembly (PCBA)
- Smart factory
- Box build and
- System integration
The following industries are covered by the electronic products manufactured by Asteelflash:
- Aerospace and defense
- Smart homes
- Consumer electronics and
24. NEO Tech
NEO Tech excels in the electronic manufacturing services industry because it combines the strengths of three leading electronic manufacturing services companies. These companies are:
- NATEL and
NEO Tech has been in the ECM industry for some 40 years, and it is still breaking into many new trends in the electronics contract manufacturing industry.
The services they offer include:
- Microelectronics services, including implantable medical electronics, ceramic substrates, and space-qualified manufacturing.
- Design services, such as circuit board design, prototyping, and engineering design.
- Electronic manufacturing services, such as Printed Circuit Board Assembly (PCBA), interconnect, and box build.
25. VTech Communications
VTech Communications is a world leader, as far as cordless phones and educational toys are concerned.
This manufacturer is doing all these as part of the continued efforts to design, manufacture and supply a wide range of telecommunication products that are both environmental-friendly and valuable to the consumers.
Some of the products manufactured and distributed by the company include:
- Amplified cordless phones
- Up to 5andsets with Digital Answering, Caller ID, and Call Waiting FoneDeco Systems.
- KidiZoom Smartwatch DX2 and
- VTech Baby Monitors
26. Alpha Networks
Alpha Networks is a distinguished DMS leader that includes valuable technologies and expertise in product design.
The company also offers a complete portfolio of off-the-shelf and custom solutions for electronic contract manufacturing.
The electronic products they manufacture cut across:
- Digital multimedia, such as IP Camera
- LAN/MAN, including Carrise Access Network, Data Center Network Industrial Ethernet Network, Enterprise Campus Network, and Small Business Network.
- Mobile Enterprise Solutions, such as Radar Sensor
- Wireless Broadband, including Wireless Networking, Mobile Broadband, and Fixed Broadband Access.
27. Enics AG
Enics AG believes that electronic contract manufacturing services can be offered without causing problems to the immediate environment.
That is why the company is committed to improving our quality of life by reducing the impact of the manufacturing processes on the environment.
They specialize in the following Electronics Contract Manufacturing areas:
- Test products
- Global sourcing of ECM components
- Lifecycle services
- Supply quality management
- ODM power products and
- Supply chain fulfillment
28. Scanfil EMS
Scanfil Electronic Manufacturing Services (EMS) has one goal in mind – to bring your electronics products to life without putting their brand name on them.
The company has been supporting hundreds of electronics manufacturers all over the world to manufacture thousands of electronic products and market them without including their name in them.
Some of the electronic manufacturing capabilities of this company are:
- Manufacturing services, such as product outsourcing, Electronics manufacturing, System integration, and Mechanical assembly.
- Product maintenance, including supply chain management, product distribution, cost improvements, and repairs.
- Rapid prototyping
- Product development and
- Design for excellence
The 3CEMS Group is an Electronic Contract Manufacturing (EMS) company that specializes in the production of a variety of electronics.
Their capabilities include:
- Printed Circuit Board (PCB) design
- Turnkey sourcing
- Printed Circuit Board Assembly (PCBA)
- System integration and
- Box build
Some of the electronic contract manufacturing services they offer are:
- Industrial electronics manufacturing
- Medical electronics manufacturing and
- Communication electronics manufacturing
30. RayMing Technology
Last but not least is Rayming Technology, otherwise called Ray PCB. This electronic manufacturing services group is quite different from the others on the list, mainly because it offers additional products and services more than the othersdo.
As one of China’sleading contract manufacturing companies, Ray PCB ensures that quality remains the watchword because they are more particular about boosting the performance of your electronic products.
Why You Should Choose Ray PCB
There are many reasons why electronic product lovers patronize Ray PCB. Are you wondering if this electronic manufacturing services provider can do a better job than the others?
Here are some of the reasons that confirm why Ray PCB should be one of your favorite electronic manufacturing companies:
Ray PCB Provides One-Stop Electronic Manufacturing Solutions
Outsourcing your electronics design and development to different electronic manufacturing companies could cost you more money than you imagined.
You need to utilize the services of a one-stop and in-house contract manufacturing company as Ray PCB offers.
What this means is that you wouldn’t have to outsource or distribute different parts of your electronics to be manufactured by different companies.
The one-stop electronic product manufacturing solutions offered by Ray PCB include:
We will single-handedly design and manufacture your electronic products, including the Printed Circuit Boards (PCBs).
Depending on how you want it, we would be glad to help you source components and parts for your electronic products.
It would be more advantageous to you because we would reach out to our extensive network of component suppliers to source the best parts and components for your electronic products.
We also offer Printed Circuit Board Assembly (PCBA) services, which means that you can trust us to streamline everything about your Printed Circuit Board (PCB).
Our PCB Assembly solutions include:
- Custom testing of the circuit board
- Full turnkey circuit board assembly
- Free DFM checking and
- Partial turnkey Printed Circuit Board (PCB) assembly
You can also trust us to build the box for your electronic products.
Varieties of PCB Solutions
Ray PCB is also committed to design, manufacture, and distribute a wide range of Printed Circuit Boards (PCBs), including:
- Multilayer circuit boards
- RF PCBs
- Rigid Printed Circuit Boards (PCBs) and
- Flexible PCBs
The performance of your Printed Circuit Board (PCB) is also very important to us. That is why we offer additional Printed Circuit Board Assembly (PCBA) testing to confirm that your circuit board is working as it should.
Minimum Order Quantity
We want to help you save more costs when manufacturing your electronic products. One of the ways we do that is by allowing you to place a Minimum Order Quantity (MOQ) of 100k pieces.
The idea is simple – the more orders you place, the lower the costs of manufacturing them and in the shortest time possible.
The list contains the 30 leading Electronic Manufacturing Services (EMS) providers in different parts of the world, from China to France.
Ray PCB is one of the most outstanding on the list because we have more full turnkey and one-stop electronic manufacturing services than the others do.
Do you want to have a feel of our electronic manufacturing solutions? Request a quote today!