Contract Electronic Manufacturing (CEM) has changed dramatically over the past 30 years. As the pace of change in the packaging of IC’s increases, the capital equipment required in the manufacturing process has had to change; shortening ROI times.
Offshore manufacturing still dominates; not just because of lower resource costs. The availability of cheap finance for capital equipment and the wide spectrum of local, specialist sub-contractors that are involved in the manufacturing process, are far more important.
Individual organisations can do little to influence this trend so must learn to adapt and continue to add value to their service proposition beyond simple partnerships with an offshore factory.
Kenetica have worked with many traditional CEM companiesto help them reshape their businesses and face these challenges through a combination of disposals, acquisitions and strategic partnerships.