Electronics Manufacturing Services Market in China
China electronics manufacturing services play a significant role in global trade, manufacturing and assembling approximately 60-70% of the world’s electronic products, and are expected to grow in the coming years. Before we get to the point, let’s figure out one question: What are electronic manufacturing services? Electronics Manufacturing Services (EMS) covers a wide range of services such as designing, engineering, manufacturing, testing, and after-market support. These companies provide flexibility and alleviate human resource issues for small companies with limited operations. Additionally, EMS companies produce with economies of scale and can respond faster and more efficiently to sudden surges in demand.
The global electronics manufacturing services (EMS) market size was valued at USD 500.26 billion in 2021, which is forecast to increase largely in the coming years. And the global electronics manufacturing service industry is currently shifting to mainland China and Eastern Europe, so China would be one of the most important players in the global electronics manufacturing services market. As reported, the growth of China’s market will be faster than that of the global market, with a GAGR of 10% and in 2023, the value of China’s electronics manufacturing services market is supposed to break USD500 billion.
What Services That EMS Companies Provide
- Printed Circuit Board Assembly (PCBA)
PCB assembly is one of the most important services provided by EMS providers, during this process, EMS companies will use surface mount technology or soldered component technology to assemble the basic components such as resistors, transistors, ICs, or integrated circuits to the bare board, and after the assembly is complete, the actual device will be electrically connected.
- Cable Assembly
Cable assemblies contain wires that interface with the PCB and product components, there are many factors that need to be considered during the assembly such as cable types, conductor sizes, insulation, and materials used. Normally, EMS companies provide full-scale cable assembly services that include engineering, fabrication, and testing, which helps to improve the work efficiency and ensure project timelines are met.
- Electromechanical Assembly
Another important service that EMS companies can provide is electromechanical assembly, which refers to the process of assembling together devices that control the flow of electrical current required by mechanical equipment. The process covers a wide range of services including procurement, engineering, and assembly of PCBs, cable assemblies, mechanical assemblies, and various testing procedures, so it is imperative that EMS providers have expertise in this area.
- Contract Design
Electronics manufacturing services companies also provide contract design services, which helps to continue the entire process more easily. They can help to refine a contracted design through many methods, including circuit simulation and prototyping, testing, fixing price, 3D CAD and physical modeling, technological feasibility reviews, quality review, and so on.
In order to ensure the quality of products sent to customers, quality assessment before shipping is an essential part. EMS providers can provide different testing services, from basic visual inspection to machine inspection to functional testing that simulates the final operating environment of the product, which can ultimately reduce product defects, improve product quality, and improve customer satisfaction.
Prototyping services provided by EMS companies can help us avoid future dangers and potential problems. With prototyping, we can check for design glitches and make improvements before starting mass production. On the other hand, we can make sure that our final product is within budget through prototyping, as it is very difficult to control the cost once the final product is in mass production. Finally, by verifying the various properties of the prototype design we can ensure that the final product will meet our requirements.
- Procurement and Supply Chain Management
EMS companies can also help with complex supply chain issues. Based on product specifications and bill of materials (BOM), electronics manufacturing service providers conduct complete sourcing, and most importantly, through optimized supply chain management, they can reduce procurement costs. In addition, electronics manufacturing services companies can provide packaging and managed logistics services.
- Lifecycle Services
EMS companies also provide end-to-end lifecycle services, which means providing customers with the support and services they need during the entire project life cycle stage, including product development, new product introduction (NPI), product upgrades, mass production, and mending returned products, and so on.
The Benefits of Outsourcing Electronics Manufacturing Services in China
There are many benefits to outsourcing electronics manufacturing services in China, below we have listed a few key benefits:
Reduced Investment in Technology and Equipment
It is not easy to introduce a new product to the market, which requires a large investment in technology and equipment. For some small or medium-sized companies who don’t have their own production lines, working with China electronics manufacturing services providers is the best choice. As people have higher requirements for electronic products, the technology required for electronic manufacturing is also constantly developing. Therefore, in order to enhance competitiveness and maintain the advanced level of production, manufacturers have to introduce new technologies and carry out maintenance and upgrades, which also increase the costs. As a major manufacturing country in the world, China continues to upgrade its equipment to better meet the electronic manufacturing needs of global customers. So cooperating with a Chinese electronics manufacturing service provider allows you to invest less in production technology and equipment while getting better service.
Skilled Workforce with Lower Costs
Electronics manufacturing requires professional labor, from design, engineering to manufacturing assembly, etc., all require expertise to ensure that the entire project can go smoothly, for example, professional PCB designers are familiar with the properties of various materials and can design according to the end application, they will choose materials that are heat-resistant and heat-dissipating quickly for products used in high-temperature environments. In order to ensure the professionalization of the labor force, enterprises need to carry out various training for employees, which also means a lot of cost input. As a country with a large population, China has abundant labor resources. Compared with European and American countries, China’s electronics manufacturing services cost lower thanks to the cheap labor costs, but at the same time, the labor force in China has received professional training. When working with a Chinese electronics manufacturing service provider, they can handle all aspects involved in electronics manufacturing, while you can focus on your other core competencies.
Complete and Stable Supply Chain
From raw materials procurement, electronics manufacturing, and assembly to logistics and other supporting industrial chains, China has a very complete and stable supply chain. Electronics manufacturing service providers in China have extensive experience in managing supply chains, including procurement processes and cooperating with suppliers and can respond to customer needs in a flexible and reliable manner. In addition, they can effectively plan and manage all steps of the supply chain. China’s electronics manufacturing services market is very large, and due to economies of scale, Chinese manufacturers can often obtain raw materials at lower prices. On the other hand, China has a complete infrastructure and an extensive transportation network including ports, highways, airports, railways, etc., which provides great convenience for electronic manufacturing services.
Short Time to Market
China electronics manufacturing services are featured with high efficiency, they work at a fast pace making sure your deadlines can always be met. Any delay may cause a loss in both business and reputation while working with reliable Chinese EMS providers can set you free from such problems. Their state-of-the-art equipment can perform the production and assembly with high productivity, and their complete supply chain can effectively integrate various resources and information, which allows them to adapt to ever-changing markets more dynamically and move quickly. They can help you launch the new electronics to the market with a short turnaround time, so you can start marketing your product before other competitors are in the market.
How to Select a Reliable Electronics Manufacturing Services Provider in China
Choosing the right EMS provider is a good start to outsourcing electronics manufacturing services to China. So what should you consider when selecting providers? Below are key considerations:
Experience and Expertise
It is vital to confirm that the electronics manufacturing services providers you chose have expertise in the field and have extensive project experience. Experienced EMS providers will work with you closely at all stages, they would actively feedback problems and put forward feasible suggestions when needed. With rich experience, they consider problems more comprehensively so that they can find potential problems and provide solutions faster. Therefore, when looking for an EMS partner, you need to do some research, confirm a shortlist of candidates, and finally confirm whether they are experts in EMS by communicating with them one by one.
Whether it is developing new products or upgrading and improving based on existing products, there are certain requirements for the design capabilities of electronics manufacturing services providers. A good EMS provider has a professional designer team that can simplify the process by optimizing the design scheme, improving the production efficiency, and ultimately reducing the cost. Most importantly, they can ensure the feasibility of the design. Therefore, when outsourcing China electronics manufacturing services, you should pay much attention to the design capabilities of these providers.
Advanced Technologies and Equipment
Excellent EMS providers are always at the forefront of the industry. Technology is changing with each passing day, and people’s needs are constantly changing. Reliable EMS providers can always perceive these changes quickly and respond flexibly. They will continue to introduce new technologies and upgrade their equipment to ensure their competitiveness. So when we choose providers, we can ask about some of the equipment and technologies they use, and we can even visit their factories on-site to check the equipment they used.
Strict Quality Control Process
A good EMS provider puts the quality first, they own a strict quality control system that makes sure each product delivered to customers is high-quality. Less rigorous quality control may cause the failure of the electronics which increases the time and cost and brings a negative impact on your reputation. When selecting the EMS provider, you should know more details about their quality control process including the testing methods. Some EMS providers also have a system that can track products and accurately recall defective products when needed. Most importantly, you should confirm that the electronics they offered comply with industry regulations.
Supply Chain Management
An ideal EMS provider has a stable supplier network and knows how to manage its supply chain to maximize its functions. From purchase, manufacturing to logistics, by leveraging the complete supply chain, EMS providers can control each step and help clients to save costs while speeding up the whole turnaround time. Thus, when selecting the EMS provider in China, supply chain management is also a very important factor that needs to be considered.
Top 5 Electronics Manufacturing Services Companies in China
MOKO leads the China electronics manufacturing services, leveraging about 16 years of experience in electronics manufacturing to help clients around the world. They provide turnkey electronics manufacturing services ranging from New Product Introduction, engineering, fabrication, and assembly to logistics and supply chain management, serving customers from kinds of industries such as medical, automotive, consumer electronics, aerospace, etc. Covering an area of about 13,000 square meters, MOKO is capable of operating in-house manufacturing from prototypes, low to medium and high volume production runs with a short turnaround time. They have a strictly quality control system and an order track system, making sure that every piece delivered to customers is high-quality.
Shenzhen Kaifa Technology
Kaifa provides global customers with services including technology research and development, process design, production, procurement management, logistics support and other services. Kaifa provides R&D and manufacturing services to customers in a variety of industries, from semiconductors, and industrial IoT, to medical, industrial, and automotive. Carrying the mission of providing world-class electronics and creating value for society, Shenzhen Kaifa Technology plays a very important role in China’s electronics manufacturing services market.
Founded in 1979, Ryder Industries owns 2 factories with a total area of 46,000 square meters. They offer full-scale electronics services including mechanical and electronic design plus, engineering, software and firmware programming, manufacturing, assembly, and so on. Their strong engineering and skills in electronic manufacturing allow them to handle complicated production runs and meet various requirements well.
New Kinpo Group
New Kinpo Group is headquartered in Taiwan, China, with many branch companies including Cal-Comp Electronics (Thailand) PC, Kinpo Electronics, XYZprinting, and AcBel Polytech. They have operations in many countries such as the United States, China, Singapore, Brazil, and Mexico. They work closely with customers throughout the project by offering design, manufacturing, assembly, and other value-added services.
Universal Scientific Industries (USI)
USI provides full-scale electronic manufacturing services, ranging from design, and manufacturing, to software and hardware solutions, logistics and maintenance, and other after-sales services. In 2020, they acquired Asteelflash, the second-largest EMS company in Europe. They serve customers in many fields such as wireless communication, medical, consumer electronics, industrial, and automotive electronics, covering Asia, Europe, Africa, and the Americas.