-
- News
- Books
Featured Books
- smt007 Magazine
Latest Issues
Current IssueBox Build
One trend is to add box build and final assembly to your product offering. In this issue, we explore the opportunities and risks of adding system assembly to your service portfolio.
IPC APEX EXPO 2024 Pre-show
This month’s issue devotes its pages to a comprehensive preview of the IPC APEX EXPO 2024 event. Whether your role is technical or business, if you're new-to-the-industry or seasoned veteran, you'll find value throughout this program.
Boost Your Sales
Every part of your business can be evaluated as a process, including your sales funnel. Optimizing your selling process requires a coordinated effort between marketing and sales. In this issue, industry experts in marketing and sales offer their best advice on how to boost your sales efforts.
- Articles
- Columns
Search Console
- Links
- Events
||| MENU - smt007 Magazine
Automotive EMS: Going Beyond Assembly
September 9, 2015 | Frederick Blancas, Integrated Micro-Electronics Inc.Estimated reading time: 1 minute
As the amount of electronics that go into a car increases, the car is becoming less of a mechanical thing consisting of a few electronics and more of a computer with wheels.
The electronics' share of vehicle value for a state-of-the-art automobile is already at 40% for traditional, internal combustion engine cars, and it could reach 75% for electric or hybrid electric vehicles. This percentage value will definitely rise in the next few years.
Automotive electronics rose by 7.3% in 2014 to about $205 billion and will continue to grow at the same growth rate to 2020, at close to $315 billion based on a report by Research and Markets. The advanced driver assistance systems (ADAS) market will have a 14.9% CAGR from estimated revenue of $39 billion in 2015 to $78.2 billion in 2020, according to Industry ARC.
According to New Venture Research, of the $91.2 billion worldwide automotive electronics assembly value in 2014, 86% was done in-house by the OEMs; 1% by the ODMs; and 13% by the EMS providers.
The automotive industry continues to grow rapidly as a high-growth market for EMS providers as it transitions steadily from mechanical to electronics. The total automotive EMS value of $12.1 billion in 2014 was contributed mainly by the top players that include Flextronics International; Hon Hai Precision Industry Co. Ltd (Foxconn Technology Group); Jabil Circuit Inc.; Zollner Electronik AG; and Integrated Micro-Electronics Inc.
Merely board stuffers—these are not today’s EMS providers in the automotive space. They’ve gone far beyond board stuffing.
The EMS providers are end-to-end solution providers, assisting the automotive electronics makers or automotive manufacturers in product realization. They engage in design and product development, advanced manufacturing engineering, and test and test system development.
Their manufacturing expertise includes PCB and FPCB assembly services, module assembly, and box build assembly. They can offer high-volume manufacturing as well as low-volume and high-mix manufacturing. Some EMS companies can do product reliability and failure analysis, calibration, and product repair services.
Further, while it is common for the tier-one EMS providers to have plastic injection capability, there are also mid-tier EMS players that can offer plastic injection. We can say that the automotive EMS players have expanded their role through vertical integration and venture into the realm of non-electronics manufacturing.
Editor's Note: This article originally appeared in the September 2015 issue of SMT Magazine.
Suggested Items
Real Time with... IPC APEX EXPO 2024: Advancements in Laser Depaneling with LPKF
04/24/2024 | Real Time with...IPC APEX EXPOJake Benz, LPKF sales manager for North America, discusses the company's advancements in laser depaneling. LPKF has introduced a green wavelength laser for processing rigid FR-4 circuit boards, bringing significant gains in processing speeds to market. The company transitioned from IR CO2 to UV wavelength due to heat and burning issues.
Hentec/RPS Publishes an Essential Guide to Selective Soldering Processing Tech Paper
04/17/2024 | Hentec Industries/RPS AutomationHentec Industries/RPS Automation, a leading manufacturer of selective soldering, lead tinning and solderability test equipment, announces that it has published a technical paper describing the critical process parameters that need to be optimized to ensure optimal results and guarantee the utmost in end-product quality.
IPC Design Competition: On Your Mark, Get Set, Go!
04/10/2024 | Andy Shaughnessy, Design007 MagazineI recently spoke with IPC’s Patrick Crawford, manager of design standards and related industry programs, and Kris Moyer, certified IPC master instructor, about this year’s IPC Design Competition. Now in its third year, the preliminary heat began in January, and the winners will compete in the final heat at IPC APEX EXPO in Anaheim.
DRAM Manufacturers Gradually Resume Production, Impact on Total Q2 DRAM Output Estimated to Be Less Than 1%
04/10/2024 | TrendForceFollowing in the wake of an earthquake that struck on April 3rd, TrendForce undertook an in-depth analysis of its effects on the DRAM industry, uncovering a sector that has shown remarkable resilience and faced minimal interruptions.
IMI Core Business Sustains Path to Recovery with $13 Million of Net Income for the Year
04/05/2024 | IMIIntegrated Micro-Electronics, Inc. (IMI) reports total group revenues of US$1.3 billion, 6% lower than the previous year, driven by factors attributable to its non-wholly owned subsidiary group including the shorter fiscal year of STI Enterprises Limited which was divested on October 31, 2023.