29 4 月, 2022 by sahdy5632 0 Comments

Why to choose Taiwanese vendors over China’s?

Taiwan Electronics Manufactures Somehow Still Stay on Top

Taiwan is known, for exporting all sorts of electronics.  Notebooks, but also lots of components such as power supplies, wireless modules, camera modules, lenses, IP cameras, etc.

It is home to TSMC, the world’s largest, and most advanced independent IC maker.

Certainly, over the past 20 years, a lot of manufacturing has moved to China, to the point that now some 80% of the world’s electronic products are made there.  But Taiwan’s ODM’s were among the first to move factories to China, and most of the world’s top OEM’s (contract manufacturers for electronic products) are still Taiwanese.

Taiwan Leads The World in ODM: Design & Manufacturing

It gets even more impressive is when you look at the top 10 ODM’s (companies which both design AND manufacture electronics for their brand name clients). You will find ONLY Taiwanese companies (source).

The conclusion is pretty stark: The world’s largest brands pick Taiwan 10 times out of 10 when they need a company to trust doing electronic design for them.

 Trust Is Key In Selecting An ODM Partner

The development of a new product can take more than a year of effort and a lot of budgets.  So as a client, you invest a lot in the relationship, in development fees, time, and IP.  However, the tricky thing is that at the start of a design project, it is difficult to fix the final cost of the unit because the exact components and the design of the product are not done yet.

Having invested that much in the venture, a client becomes vulnerable, because moving ​a complex product ​to a different manufacturing partner with a different set of component suppliers will again take a lot of time and money, while the market window for consumer electronic products can close after just 6 months.

So to ask another company to do both your design and manufacturing you need a lot of trusts.  See China ODM Factory Electronic Design: 7 Pitfalls To Avoid.

A good partner does not abuse the trust placed in them.  Seeing that the Taiwanese firms have been able to retain their clients for so long is a big vote of confidence.  Taiwanese ODM Electronics firms have a good 40 years of experience maintaining great relations with Western brands and are very close to China and its unparalleled electronics supply chain.

The Role Of Government in Business

There is a substantial difference in the role of government in Chinese businesses compared to Western countries.  China has a planned economy closely tied to government.  In China, more than 76% of assets are owned by the government, with people owning less than a quarter; while in the United States, assets are owned privately.  This means that to do business in China, a company will most likely have to negotiate with the state.  The bureaucracy involved in negotiating with the state can slow down the pace of business ventures.

The United States has accused China of stealing the intellectual property of American firms, theft that is estimated at US$600 billion annually.  As a precondition for doing business in China, American and other firms may be subjected to the forced transfer of their technology.  In addition, regulations can require foreign investors to partner and set up a joint venture with a Chinese firm before they can do business in China.

There has been controversy surrounding many of the Chinese technology companies and their exponential growth.  The simple reason being China is not a democracy.

Protecting your Intellectual Property

Protection of Intellectual Property Rights (IPR) in China however is a big concern for many Western companies, and rightly so.  Just under one-third of CFOs of North America-based companies on the CNBC Global CFO Council say Chinese firms have stolen from them at some point during the past decade.

Source: https://www.cnbc.com/2019/02/28/1-in-5-companies-say-china-stole-their-ip-within-the-last-year-cnbc.html

Taiwan established an Intellectual Property Court in 2008; China has yet to address IP security concerns.  This is once again demonstrated that Taiwan has a significant advantage over China in regard to IP.

Patent Protection in China

Even after China joined the WTO in 2001, patents are still of very little use because there continues to be lack of effective enforcement.  Should a company, after years of litigation, win a lawsuit in China, it by no means guarantees that the offending factory will be closed down.  And if the factory does get closed down, they very likely will take their machines down the road and start up again at a new location.  Of course, it does not help that damage awards in China are usually so meager that they do not justify the costs of litigation.  And to make matters worse, local courts are often biased as many Western companies have come to realize.

Global Economic Effects of COVID-19

Taiwan has managed the spread of COVID-19 far better than most.  Despite economic shrinkage, the impact of COVID-19 on Taiwan’s economy is restrained compared to other countries.  Singapore (-2.2%), European Union (-2.7%), USA (-4.8%), China (-6.8%) and Hong Kong (-8.9%) have reported a more significant drop in the first quarter of 2020.  Taiwan’s success in controlling the spread of COVID-19 has minimized the impact of COVID-19 on its economy.

On the other hand, China’s factory activities continue to shrank as the country’s worst COVID-19 outbreak in two years brought sporadic lockdowns and factory closures.  In result of China’s manufacturing activity fell to a five-month low after most of Shanghai and two other industrial centers were shut down to fight coronavirus outbreaks.

Ease of Doing Business When Manufacturing In Taiwan Over Mainland China

Taiwan ranks higher than mainland China on every single metric related to trading across borders in the World Bank’s Doing Business report:

Not only does Taiwan rank better than mainland China, but Taiwan is also a leader in East Asia in this regard: only Singapore and Hong Kong rank higher overall than Taiwan on ease of doing business in East Asia.  Other metrics considered in the overall rank include important considerations for manufacturers like paying taxes, obtaining credit, enforcing contracts and getting electricity.

Meanwhile, mainland China ranks 10th overall in East Asia for ease of doing business and is also eclipsed by common manufacturing destinations like Malaysia, Thailand, Vietnam and Indonesia (ranked 4th, 5th, 8th and 9th, respectively). While mainland China often scores higher than developing countries like India and Bangladesh on these metrics, Taiwan’s wide lead still represents a major advantage.

So while you might find cheaper prices in mainland China, you might find manufacturing in Taiwan is better for your peace of mind, lead times and trade-related overhead costs.


To conclude that while 80% of the world’s electronics are made in China, the whole top 10 of the world’s ODM’s are Taiwanese owned.  And for good reason: Taiwan ODM’s are known for good quality, reliable production lead-times, fair prices, and above all good business practices.

29 4 月, 2022 by sahdy5632 0 Comments

What are Electronic Manufacturing Services (EMS), how to select a reliable EMS provider?

What Is EMS?

Have you heard the term Electronic Manufacturing Services, but don’t know what it is?  The term Electronic Manufacturing Services (EMS) describes companies that act as manufacturing service providers for electronic components, assemblies (printed circuit boards, circuit boards), devices and systems up to complex electronic system solutions.  EMS also refers to the services related to the development, manufacture and testing of electronics itself.  In some cases, the term electronic contract manufacturing (ECM) is used synonymously. EMS usually act on behalf of original equipment manufacturers (OEM) and in terms of the type and scope of the services to be performed according to the client’s specific specifications (contract manufacturer).

They service a diverse range of industries, manufacturing products for healthcare, consumer electronics, defense, aerospace, energy management, automotive, and other sectors.

Trends In The Electronic Manufacturing Services Industry                 

The electronic manufacturing services industry has seen tremendous growth which can be attributed to several factors that include:

  • A surge in the demand for automotive electronics attributed to the increased need for safety systems.
  • Increasing demand for consumer electronics in both developing and developing countries around the world.
  • Rapid growth in mobile devices technology. By 2020, over 5.4 billion people around the world owned a mobile phone.


EMS Today And Future

Today, there are very many EMS providers across the globe that have been established to need the growing demand for electronics components and outsourced electronics manufacturing services by OEMs.

According to market research, the EMS industry is forecast to be worth $725 billion by 2025 at a compound annual growth rate (CAGR) of 7.5%.  There is a growing demand for innovative technological advancements and innovation that most EMS providers can capitalize on.

However, EMS providers will have to provide more industry expertise and experience to meet the rising demands amidst the challenges of the need for robust product lifecycle management systems, increasing labor costs, global competition, compliance and traceability, and the huge investments required for the infrastructure and support systems to manage complex, and highly controlled markets like aerospace, defense and medical.

With the rising demand, competition among electronic manufacturing service providers has also intensified, but this has also raised global norms in the EMS industry.  The EMS companies are devoted to upgrading their facilities and applying new technologies such as virtual reality, the Internet of Things, and 3D printing to improve their production efficiency and quality.  And they build collaboration with many Original Design Manufacturers and Original Equipment Manufacturers to enhance their EMS performance.

How To Select a Reliable EMS Provider?

With a vast amount of options in the electronics manufacturing service (EMS) industry, it can be challenging to decide which manufacturer is right for you.  You know you want your product to be developed efficiently and successfully, but knowing exactly what to look for to ensure that happens is another matter.  Here are seven things to take into consideration when selecting an EMS partner.


  1. Experience

The more experience a business has with manufacturing electronics, the better.  Established electronic manufacturers are incredibly knowledgeable about the industry and can be relied on to produce quality products.  It is recommended to interview more than one manufacturer, and when you meet, ask your potential partners how much experience they have in electronic manufacturing.  From there, you can determine which companies have worked on projects similar to yours.


  1. Design Proficiency

Your outsource partner should be able to meet you where you are in the design process, whether that means making initial outlines or amending your most recent prototype.  A great electronic manufacturer will be ready and able to streamline your design process, making your partnership as constructive as possible.


  1. Technologically Advanced

An EMS partner that uses the latest technology will give you a competitive edge.  Don’t hesitate to ask your potential electronic manufacturing service what kind of technology and equipment they work with.  If you’re aiming for high-volume production, it’s especially important to look for a partner who’s invested in surface mount technology (SMT).


  1. Regulatory Compliance

It’s crucial that electronic manufacturing services are in line with regulatory compliance.  Adhering to the industry’s laws, regulations, guidelines, and specifications will affect every stage of the manufacturing process, as well as your final product.  A valuable outsourcing partner will also be willing to abide by your individual guidelines for production.


  1. Make Good On Quality Assurance And Quality Control

Your electronic manufacturer should exercise both quality assurance and quality control.  While QA is process-oriented, QC is product-oriented.  An EMS business that has a solid track record of delivering both quality assurance and quality control will have faster turnaround times and a durable production procedure.


  1. A Supply Chain Management System

For manufacturing to run smoothly, your EMS partner needs a supply chain management system in place. Without one, you and your electronic manufacturing service company run the risk of wasting time tracking down various components for your product.  Ask your prospective EMS partners what kind of software they use to manage supply chains and to gauge their general knowledge about global manufacturing.


  1. Incorporates Product Testing

A quality EMS partner understands their work isn’t complete when production is over.  Testing is needed for every component of the product so you can rule out any defects or deficiencies without wasting a great deal of time and money.

Protecting your Intellectual Property

When looking for a company that offers EMS, make sure to find out how they will protect your property.  The company is an integral part of your products, and it is in your interest to make sure that they dedicate themselves to protecting your valuable data.  Protection of Intellectual Property Rights (IPR) in China is a big concern for many Western companies, and rightly so.

Just under one-third of CFOs of North America-based companies on the CNBC Global CFO Council say Chinese firms have stolen from them at some point during the past decade.

Source: https://www.cnbc.com/2019/02/28/1-in-5-companies-say-china-stole-their-ip-within-the-last-year-cnbc.html

The Top 10 Electronics Manufacturers in 2020

  1. Hon Hai (Taiwan)
  2. Pegatron (Taiwan)
  3. Quanta (Taiwan)
  4. Compal (Taiwan)
  5. Wistron (Taiwan)
  6. Jabil (US)
  7. Flex (US)
  8. Inventec (Taiwan)
  9. BYD Elec (China)
  10. USI Global (China)

Source: https://www.digitimes.com/news/a20210816VL202.html


In fact, 75% of the global EMS market is held by Taiwanese companies, and out of the top 6 EMS providers in the world are based in Taiwan.  Taiwan also has a significant advantage over China in regard to IP.  Taiwan established an Intellectual Property Court in 2008; China has yet to address IP security concerns.


The ideal EMS provider help turn your product idea into a high-quality, cost-effective, and market-ready reality. However, it is important to find out how they will protect your property.

29 4 月, 2022 by sahdy5632 0 Comments

What are PCB and PCBA?

What Is PCB?

PCB stands for Printed Circuit Board and they are the foundational building block of most modern electronic devices.  From your Apple Watch to your laptop, almost every electronic gadget you own contains one or more PCBs.  Simply put, a PCB is a sheet of non-conductive material housing electrical components.  The sheet, which is often made from fiberglass or plastic, is “printed” or “etched” with electrical circuitry, hence the term “circuit board.”  The copper circuitry on a PCB connects electrical components, relaying electrical signals back and forth.

A PCB besides is a board made from non-insulating and highly heat-resistant insulating material like fiberglass.  These boards are also called substrates.  A conductive metal like copper (sometimes gold) is used to make conductive circuits or pathways or traces for electricity to flow in a predetermined controlled manner.  Once PCB itching is done and the circuit is ready on the board, it is called PCB or Printed Circuit Board with no electronic components assembled or soldered onto it.  These circuit boards can be single layer, double layer, or multilayer depending on requirement of the electronic gadget.

Single-Sided vs. Double-Sided vs. Multilayer PCBs

There are various types of PCBs like Single Sided, Double Sided and Multilayer PCBs.  When you read information about PCBs, you may see the terms “Single-Sided,” “Double-Sided” and “Multilayer” used often.  The circuit board industry uses these categories to determine the complexity of a board’s structure.  Each type of PCB has different price points and uses.  With a basic understanding of PCB production, you can discover the capabilities of these board compositions.


A single-side PCB, also known as a single-layer PCB, is simple and affordable to produce.  When creating a single-sided board, the manufacturer adds these layers to one side only.  Single-sided boards may not have the same complexity as their counterparts, but they power a wide range of everyday electronics.  Since they cost so little to make, you can find them in bulk-manufactured devices like:

  • Cameras
  • Audio equipment
  • Power supplies
  • Calculators
  • Solid-state drives
  • Printers


Making double-sided PCBs involves the same kinds of layers as a single-sided board.  The difference between double-sided and single-sided PCBs is that instead of using a single-sided copper core, the manufacture will start a core with copper on both sides.  Double-sided PCBs have a higher cost than single-sided boards, but they provide twice as much space for components.

Electronics that need an intermediate level of circuit complexity use double-sided PCBs to operate.  Double-sided boards power more complicated devices than single-sided PCBs, but they can’t handle advanced applications like computers or smartphones.  They appear in electronics such as:

  • LED lighting
  • Vending machines
  • Car dashboards
  • Phone systems
  • Industrial controls



Multilayer PCBs can support a high level of circuit complexity because they consist of three or more copper layers laminated together.  The manufacturer starts a core that has the same materials as a typical single-sided or double-sided PCB.  After etching the inner core, they add layers of prepreg, a soft fiberglass.  This material keeps the layers together and becomes hard fiberglass after the board goes through a hot press. As a result of the curing process, multilayer PCBs are tough and durable.  If the manufacture is building a 4 Layer PCB they typically will use one core, prepreg and copper foil for the top and bottom layers.

We have complex technology like computers and data servers thanks to the high capacity of multilayer PCBs.  Other examples of devices powered by multilayer PCBs include:

  • Fiber optics
  • Smartphones
  • GPS systems
  • Scientific and space equipment
  • Heart monitors
  • Atomic accelerators

What Is PCBA?

PCBA stands for Printed Circuit Board Assembly.  It is the board obtained after all printing solder paste on the PCB and then mounting various electronic components like Resistors, ICs (Integrated Circuits), SMD Capacitors, Transistor, Diode and any other components like Transformers depending on the application and desired characteristics of the board.  These electronic components can be through-hole components or SMD components for SMT (Surface Mount Technology) or Mixed Soldering Technology or by Hand Soldering.  A PCBA usually undergoes reflow furnace heating to establish a mechanical connection between the PCB and the components.  Once all the electronic components are assembled or soldered onto the PCB it is termed as PCBA or Printed Circuit Board Assembly. 

What Is The Difference Between PCB And PCBA?

PCB refers to the circuit board, while PCBA refers to the circuit board plug-in assembly, SMT process.  One is a bare board, and the other is a finished board.  Therefore, the main difference between these two terms is that PCB refers to a blank circuitry board, while PCBA refers to a board that contains all of the necessary electronic components for the board to function as needed.  PCBs and PCBAs are two different parts of the same process — a PCBA is built on top of an existing PCB.


Interesting Facts About PCBs

While PCBs and other circuit boards come in more colors than ever, the majority of them come in a signature green color.  The first PCBs were used for radios and other military applications.  After the end of World War Two, they found their way into industry and ultimately the fledgling market for consumer electronics.  Today, PCBs can be found everywhere we look, from PC motherboards and memory sticks to mobile devices and controllers in household appliances.  From consumer electronics and home appliances to automotive and aerospace applications, it is impossible to imagine the modern world without PCBs.

PCB Industry In Taiwan

At present, Taiwan is one of the leading countries in the PCB industry.  According to Taipei Printed Circuit Association (TPCA), Taiwan’s Printed Circuit Board industry has temporarily led the global market with a 33.9% market share, but competition from South Korea and Japan, especially from China, remains fierce.  TPCA indicates that Taiwan can maintain its technological lead for 3-5 years if the government sets up a global hub of advanced PCB fabrication and pursue autonomy in the supply of PCB materials.

While Taiwanese PCB manufacturers still capture strengths in technology and quality, and alongside Taiwan’s world-leading semiconductor and ICT industries, besides enjoying the geographic advantages, Taiwan’s PCB industry can take advantage of Taiwan as the world-leading IC substrate production base.  Therefore, Taiwan’s PCB industry must upgrade to advance processes to catch the tremendous business opportunities alongside Taiwan’s semiconductor industry’s evolution.