The electronics manufacturing industry is the most important strategic industry in the world economy, with the characteristics of large industrial scale, rapid technological progress, and strong industrial relevance.
Highfive EMS Center Contacts A Electronics Manufacturing
Electronics Manufacturing Trends
The electronic manufacturing industry presents the following characteristics and trends
More and more product categories in the electronics manufacturing industry
Products in the traditional electronics manufacturing industry include 3C products, the manufacture of metal and plastic parts for the assembly of complete machines, and automotive electronics, medical equipment, instrumentation, and other fields.
On the basis of traditional business, a significant development trend of the current electronics manufacturing industry is that the trend of integration and cross-border becomes more and more obvious. On the one hand, integrated innovation characterized by cross-convergence has gradually become the mainstream.
For example, the accelerated development of big data, virtual reality, artificial intelligence, etc. rely on not only single-point technology, a single product, or single-link innovation breakthroughs but also a combination of computing technology, communication technology, network technology, perception technology, Display technology, and other technological innovations.
On the other hand, cross-sectoral innovation characterized by penetrating radiation has become increasingly prominent. In recent years, the cross-penetration of information technology and manufacturing, materials, energy, and other technologies has deepened. While promoting the transformation and upgrading of traditional industries, a large number of new models, new formats, and new industries have also been cultivated. For example, intelligent robots are one of the hotspots of emerging industries in the world. While leading traditional robotics companies are increasing their R&D efforts, many information technology companies such as Google, Microsoft, and Intel have entered this area through independent research and development, mergers and acquisitions, etc. field.
Three major companies in the electronics manufacturing industry
Electronics Manufacturing Three Business Models
Characteristics and development trends of business models
The business chain of the electronics manufacturing industry includes different links such as technology research and development, product design, manufacturing, marketing, sales, and service. Different companies have different divisions of labor in the business chain. Generally speaking, there are three main types of division of labor in the business chain. Business model of the company.
1. OBM: Original Brand Manufacturer, private brand manufacturer, IBM, and other brand manufacturers, OBM occupies all links in the value chain.
2. EMS: Electronics Manufacturing Services. EMS providers refer to manufacturers that provide manufacturing services to their own brand manufacturers, occupying the manufacturing link, and some have design and service links.
3. ODM: Original Design Manufacturer, an original design manufacturer, refers to a manufacturer that not only conducts R&D and design but also product manufacturing. It occupies the design and manufacturing links and has strong product research and development capabilities.
As the global electronics industry is moving towards the dual trend of vertical integration and horizontal division of labor, OBM brand owners gradually regard design, marketing and brand management as their core competencies, while outsourcing manufacturing and other links to EMS or ODM. The division of labor among the three industries is also affected by other factors:
First of all, the development cycle of new electronic products is shortened and the price changes drastically. Through the advanced production technology and cost control capabilities of EMS service providers, OBM brand owners can develop and produce high-quality and reasonably-priced products in a short period of time, and accelerate the investment of new products. Increase market share through market speed;
Secondly, by outsourcing the manufacturing process to professional EMS service providers, brand owners can better realize production modes such as BTO (Built to Order) and CTO (Customize to Order) to satisfy global consumers. Different needs;
Third, through collaboration with EMS service providers, OBM brand owners have effectively achieved functional division and risk sharing, so as to concentrate resources on core R&D and marketing links and improve the rate of return on capital and competitiveness.
The market competitiveness of electronic manufacturing companies is gradually increasing
Our EMS has won many customers by virtue of abundant high-quality labor resources, a relatively complete supporting industrial chain, and a huge potential consumer market. At the same time, we also provide ODM services to design and manufacture on behalf of customers.
Our Electronics Manufacturing Advantage
1. Rapid response capability: The life cycle of electronic products is getting shorter and shorter. Both OBM and EMS companies need to establish a rapid response to the market, which is mainly reflected in three aspects: fast introduction of new products, short production cycle, and fast warehousing and distribution.
2. Quality control advantage: Product quality is an inevitable requirement of the market for OBM. Large-scale branded OBM cannot afford quality risks. Quality control capability is one of the core assessment indicators for EMS companies to enter the brand supplier’s supply chain.
3. Total cost leadership: For EMS companies, its competitive advantage is based on the establishment of a cost leadership strategy.
4. Customer resource advantage: High-quality and stable customer resources are a necessary prerequisite for the sustained and healthy development of EMS companies.
5. Large-scale management capabilities: For EMS companies, orders from different brands have the characteristics of large numbers, various types, and different specifications, which require high-scale production capabilities of EMS companies.
Faced with the complex situation of numerous production lines, complex raw material categories, large order quantities, and diverse customer needs, EMS companies must establish a standardized production management system and standard operations in order to achieve the goals of large-scale production, low cost, high quality, and high efficiency. Processes, clear testing standards, and a visualized supervision mechanism for the entire process can effectively manage the large-scale production process.
6. Technical capabilities: As the upgrading of electronic products continues to accelerate, EMS companies must closely follow the trend in process technology in order to meet the needs of electronic products for the supporting supply chain.
Highfive Two Engines of Electronics Manufacturing
1. Build a multi-subject and multi-dimensional collaborative innovation system to help accelerate the development of emerging fields
Strengthen collaborative innovation among industry entities, and build a collaborative innovation system including government departments, industry think tanks, industry associations, scientific research institutions, and enterprises.
Strengthen the collaborative innovation of all links in the industrial chain, and actively promote the horizontal integration of the same links in the industry and the vertical integration of different links in the industry. Deepen the collaborative innovation among the supporting conditions of the industry, promote the concentration and effective integration of the industry’s supporting resource advantages, and strengthen the collaborative innovation of research and development, applications, policies, and services in emerging fields such as artificial intelligence and 5G.
2. Accelerate the research on basic core and underlying key technologies, and improve supply chain capabilities
Strengthen the research on the shortcomings of the industrial chain. Integrate resources from companies, universities, research institutions, industry think tanks, industry associations, etc., research and analyze shortcomings and shortcomings in key areas such as electronic materials, core equipment, chips, operating systems, and basic software, and understand domestic and foreign companies The supply capacity of China, the gap with the advanced level of foreign countries, should accelerate the breakthrough and focus on the industrial fields that should be nurtured.
Gather efforts to break through the basic core and underlying key technologies. In the key areas of electronic information manufacturing such as information communication, home audio-visual, health care, etc., step up to make up for weaknesses in materials, equipment, and core technology products, breakthrough key core technologies and products as soon as possible, and concentrate efforts to overcome basic core and key technologies to improve electronic manufacturing The overall technical content of the industry to enhance the competitiveness of industrial chain clusters.
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