EMSNOW caught up with 3CEMS Executive Vice President Ian Tang to talk about his company, which is #29 on MMI’s Top 50 EMS. Its vertically integrated factories offer a wide range of capabilities, know-how and supply chain management to meet customer’s most stringent requirements, based on their over 20 year history in electronics manufacturing. Here’s what he said about his company, the challenges facing the industry, and how they plan to address them.
EMSNow: 3CEMS is a top 50 EMS company that is a combination of DMS, EMS and PCB manufacturing. Please give our readers an overview of your company history and how the different businesses cooperate.
Being a Taiwanese EMS company based in China for over 24 years, 3CEMS Group provides deep electronic manufacturing solutions and experience in a wide range of electronic industries, starting with computer mother board manufacturing in 1994, Shenzhen China.
3CEMS group comprises three plants in China: Amertek Computer (EMS), Prime Technology (JDM/EMS) and Broad Technology (PCB). We have two sales and marketing offices in Taipei and USA, and 4,800 employees worldwide. I am proud to say we’ve achieved several awards from Tier-1 customers in the automotive, optical, communication, marine, medical and consumer electronic industries as the best EMS supplier in quality control. The 3CEMS Group was also the SEAs (Service Excellence Award) winner for Best Quality Control in 2017.
Because of our long history, we not only have the capability to provide manufacturing services, but also turnkey, DFx and joint design engineering capabilities to optimize customers’ designs in order to bring cost down from the very early manufacturing and design stage.
EMSNOW: What is your ideal customer profile?
A “win-win” business partner is always the ideal customer. No matter whether they are Low-Volume High-Mix or High-Volume Low-Mix, we would always prefer to be a strategic partner with a potential customer, but of course healthy financial status and stable revenue from both parties are a must, even if it’s a start-up company.
EMSNOW: 3CEMS also has expertise in the optical communication sector. Please tell us more about this and the type of customers you serve in this area.
Our major customer in this technology is very well-known in the optical industry and we have been cooperating very closely as a strategic partner for more than 10 years. From design to manufacturing, we play a role as an engineering consultant to joint design and optimization of their optical products. 3CEMS has deep knowledge and capability to produce and manufacture optical fiber transceivers like 10G~400G Optical Transceiver, SFP TRX, XFP TRX, InfiniBand QDR, LR4 CFP, QSFP and 4SFP.
EMSNOW: What technological changes do you expect to be the most challenging for 3CEMS and the EMS industry in the next few years?
Like many others, we see Industry 4.0 as the primary driving market trend of the future. We don’t see that the industry is quite there yet, because EMS is involved in so many different customers from so many industries.
However, we are in the process of defining specific business segments that learn from consumer electronic products to enable us to be on the stage of implementing smart factory ideas from now on. And it is a must to do so for sure in order to hold cost down from the growing intensity of labor costs in China.
EMSNOW: As a global EMS, what are the biggest challenges to profitability that your company faces? How are you addressing these?
As a matter of fact, I think all the global EMS companies have been facing two critical subjects that tremendously affect running our businesses: component shortages and the tariff war.
Strategic purchasing is a must to solve long lead time components; working closely with large global distributors and original manufacturers will be the key to avoid shut downs from lacking of components.
On the other hand, 3CEMS has been considering opening production facilities in a South-East Asia country in order to prevent the high tax rate for American customers. We now work with our strategic EMS partner, who is also the investor of 3CEMS group, in Malaysia and manufacture electronic products from there, and direct ship to our American customers. This strategy will really help our American customers to avoid paying high tax if they would like to transfer manufacturing to an Asia EMS.
EMSNOW: What do you see as the biggest opportunities for the industry and for 3CEMS specifically in the next 2-3 years?
Challenges are always our opportunities to lever-up the whole business, especially sourcing power and quality control. 3CEMS will be more focused on automotive and industrial electronic manufacturing business in the future since the era of IoT demands are getting higher and higher.
EMSNOW: Is there anything else you would like to say to the EMSNOW readers?
3CEMS Group’s business is based on Four Core Values: Determination, Collaboration, Innovation and Reliability. We are really supportive to every customer that has high promise and commitment to the EMS business model.
We have not only achieved many awards from our Tier-1 customers, but also are verified as a high standard EMS company in the world top 29th position. It will be great if your readers find us as a potential supplier to provide electronic manufacturing service to build their designed products, and to be win-win partners for both companies.