Application Watch: China's steady pursuit of smart manufacturing

China's EMS companies have long emphasized improving their services to meet specific requirements from customers in a fast turnaround time. This has been an ongoing endeavor for the past decade, which saw a stream of technology and machine upgrades that also included the adoption of industrial robots. In recent years, smart manufacturing has become the focal point for increasing efficiency and product quality amid rising labor costs and intensifying market competition.

The Chinese government, in fact, has been encouraging the use of industrial robots for the past several years. In the "Guidance on the Promotion and Development of the Robot Industry" released by the Ministry of Industry and Information Technology (MIIT) in 2013, one of the goals was to have 100 robots per 10,000 factory workers. This was echoed in the Made in China 2025 program announced in 2015, pegging robot density at 150 per 10,000 workers by 2020.

Government support has also been extended to cover specific opportunities such as the development of the Internet of Things (IoT). In 2018, the China Information Technology Industry Federation issued the guidance document "General Program on Electronic Smart Manufacturing," formulating the industrial internet and security and core product innovation platforms to promote smart manufacturing. A mobile IoT industry innovation center was set up, which offers support to enterprises on AI, industrial internet and NB-IoT technology and industry development.

In Deloitte's 2018 report on China's smart manufacturing, one of the key findings was "51 percent of [surveyed] enterprises are already using AI in manufacturing and management and 46 percent have started or are working on deploying AI to empower their products and services."

However, "China's digital transformation of its manufacturing sector remains largely in its infancy, such as the use of industrial software, and data mining and utilization at production sites," said Fang Xiaoxia, a researcher with the Chinese Academy of Social Sciences, in a report on XinhuaNet.

Competition with foreign EMS providers operating in China will provide an impetus for homegrown companies to excel using new technologies. There are a number of Chinese companies that have already invested in smart manufacturing. Shenzhen 7Renju did so as early as 2016, setting up its own platform and offering total solutions to customers. The strategy not only boosted production efficiency and enhanced product quality as expected, but also helped lower its total cost of ownership.

Over a thousand manufacturers make up China's EMS sector and most are locally owned. Foreign companies, although a minority, still dominate the domestic and overseas markets. These include Foxconn and Flex. 3CEMS, Shenzhen Kaifa, DBG and BYDE are some of the major Chinese players.

To keep up with foreign counterparts, Chinese companies are continuing to expand their manufacturing capabilities. DBG, for example, now has a total of more than 70 SMT production lines in its factories in Huizhou, Jiaxing, Shenzhen and India.

Silver lining

Research and Markets forecasts a 6.8 percent CAGR for the EMS market between 2021 and 2026. This is attributed to the rise in the number of companies that are downsizing their manufacturing activities to focus on other business aspects and turning to outsourcing instead. The same option works for those seeking to expand or restart operations in other locations.

Analysts in general are confident the projected growth catalysts pre-pandemic will ensure healthy demand in the coming years. These will be communications, industrial control, and consumer, medical and automotive electronics.

Creat Electronic Group Co. Ltd offers EMS for consumer and nonconsumer electronics and is expecting a 20 percent uptick in sales in the months ahead after seeing no growth in 2020. Shenzhen Chengjieda, which has just started exporting products, will add two SMT lines to increase output.

Most Chinese companies offer full or partial turnkey services, with options of SMT, THT, box building, potting and coating, in-house programming and packaging. They use all kinds of PCBs, such as rigid, rigid-flex and flexible in single-, double-sided and multilayer variants. Their component placement capability is from 01005 and 0.25mm BGA pitch. Available tests include ICT, AOI, X-ray, and functional and aging testing.

As further assurance, EMS providers use chips, discrete devices and passive components sourced from local agents of Digi-Key, Arrow, Mouser and RS Components. Other materials come from domestic suppliers.

Product quality is based on relevant industry standards, including CE, cUL, UL, TÜV and RoHS.

PCB assembly on up to 48-layer board

The CEG2021 offered by Creat Electronic Group Co. Ltd is a PCB assembly based on an FR-4 board that has 3.94mil minimum line width and spacing, and an HASL, ENIG, immersion tin or OSP surface finish. The board, which may be up to 48 layers, has 0.1 to 4mm thickness.

Order quantity is negotiable. Delivery is within 21 days.

Inquire now

PCB assembly, has 1.6mm-thick board

From Shenzhen Chengjieda Industry Ltd, this CJD PCB assembly uses an FR-4 board with an ENIG surface finish, blue solder mask and white silk-screening. Board thickness is 1.6mm and size 173x110.8mm.

The minimum order quantity is 10 units. Delivery lead time is seven days.

Inquire now

PCB assembly for aromatherapy, smart devices

For aromatherapy devices and smart consumer electronics, this PCB assembly from Syhogy (Xiamen) Tech Co. Ltd, the XHD_CM, has an FR-4 base and an HASL surface finish. It has 1.6mm board thickness. Dimensions are 80x60x15mm.

An order of at least 100 units is required. This has a seven-day delivery lead time.

Inquire now

PCB assembly with high-Tg base

Based on a single, multilayer or flexible board made of high-Tg material, this GS-133 PCB assembly from Tortai Technologies Co. Ltd integrates 0201, BGA, QFN and fine-pitch components with maximum height of 0.787in. The RoHS-compliant unit, with buried and blind holes, and impedance control, undergoes IC programming. Board size ranges from 0.2x0.2 to 25.2x24in.

The negotiable minimum order quantity has a delivery lead time of 12 days.

Inquire now