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Ultimate Guide to Electronic Manufacturing Services

Electronic Manufacturing Services (EMS) – Ultimate Guide
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Introduction to Electronic Manufacturing Services (EMS)

In today’s interconnected world, electronic devices are ubiquitous, powering everything from our smartphones to complex industrial machinery.  Behind the scenes of this technological revolution lies the intricate process of electronic manufacturing.  For many companies, managing this complex undertaking in-house is resource-intensive and challenging. This is where Electronic Manufacturing Services (EMS) providers step in, offering specialized expertise and streamlined solutions for bringing electronic products to life. This article serves as your comprehensive introduction to the world of EMS, exploring its importance, evolution, and the core benefits it offers.

What are Electronic Manufacturing Services (EMS)?

Electronic Manufacturing Services (EMS) companies are your one-stop shop for outsourcing the manufacturing, assembly, and testing of electronic components and finished products.  They act as a strategic partner, taking on the often-complex task of bringing your electronic designs from concept to reality.  Think of them as the specialized factories and expert teams that handle everything from sourcing components to assembling intricate circuit boards and packaging the final product, allowing you to focus on your core competencies like product design and marketing.

Electronic Products

Why are EMS Important?

In a world of ever-shortening product lifecycles and increasing technological complexity, EMS providers offer crucial advantages.

  • Cost-Effectiveness: EMS providers leverage economies of scale, bulk purchasing power, and optimized manufacturing processes to reduce production costs. They also eliminate the need for companies to invest heavily in manufacturing facilities and equipment.
  • Expertise and Specialization: EMS companies possess deep expertise in electronic manufacturing, including printed circuit board (PCB) assembly, component sourcing, testing, and quality control. They stay at the forefront of industry advancements and best practices.
  • Flexibility and Scalability: EMS providers offer flexible manufacturing capacity, allowing companies to scale production up or down quickly to meet changing market demands. This agility is crucial in today’s dynamic business environment.
  • Focus on Core Competencies: By outsourcing manufacturing to an EMS provider, companies can free up valuable resources and focus on their core strengths, such as product design, research and development, and marketing.
  • Reduced Time to Market: EMS providers can accelerate the product development and manufacturing process, helping companies bring their products to market faster and gain a competitive edge.
  • Access to Latest Technologies: EMS providers are constantly updating their technology and equipment to keep pace with the rapidly evolving electronics industry. This access allows their clients to benefit from the latest manufacturing processes without massive capital outlay.

A Brief History of EMS

The EMS industry has evolved significantly over the past few decades.  Initially, it focused primarily on simple assembly tasks. However, as technology advanced and manufacturing processes became more complex, EMS providers expanded their service offerings to include design support, component sourcing, testing, and logistics. The rise of globalization and the increasing demand for outsourcing further fueled the growth of the EMS industry. Read more about the history of EMS here.

The Value Proposition of EMS

The core value proposition of EMS lies in its ability to provide a comprehensive and integrated solution for electronic product manufacturing. By partnering with an EMS provider, companies can:

  • Reduce costs and improve profitability.
  • Access specialized expertise and cutting-edge technology.
  • Increase flexibility and scalability.
  • Focus on core competencies and accelerate time to market.
  • Improve product quality and reliability.
  • Gain a competitive advantage in the global marketplace..

Conclusion

Electronic Manufacturing Services have become an indispensable part of the global electronics industry. By outsourcing manufacturing to a trusted EMS partner, companies can unlock significant benefits, from cost savings and improved efficiency to increased flexibility and faster time to market. As technology continues to advance and market dynamics evolve, EMS providers will play an even more critical role in helping companies bring innovative electronic products to life.  In the next sections of this cornerstone article, we’ll delve deeper into the specific services offered by EMS providers and explore the key factors to consider when choosing the right partner for your needs.

Core Services Offered by Electronic Manufacturing Services (EMS) Providers

In the previous section, we explored the importance of Electronic Manufacturing Services (EMS) and their role in the electronics industry. Now, let’s dive into the core services offered by these providers, giving you a comprehensive understanding of what they can do for your business. From initial design support to final product assembly and even after-sales service, EMS providers offer a wide array of capabilities.

1.Manufacturing & Assembly: The Heart of EMS

  • Printed Circuit Board (PCB) Assembly: This is arguably the most fundamental service. EMS providers are experts in assembling electronic components onto PCBs using various techniques:
    • Surface Mount Technology (SMT): For small, surface-mounted components, offering high density and miniaturization. EMS providers utilize sophisticated pick-and-place machines and reflow ovens for precise and efficient SMT assembly. 
    • Through-Hole Technology: For larger, leaded components, often used in applications requiring greater durability. This involves inserting component leads through holes in the PCB and soldering them on the other side. 
    • Mixed Technology: Combining both SMT and through-hole assembly on a single board to optimize for component size, cost, and reliability. 

Read our blog on PCB Assembly Process Explained to learn the details. 

  • Cable and Harness Assembly: EMS providers fabricate and assemble cable harnesses, which are essential for connecting different parts of electronic systems. This includes cutting, stripping, crimping, and terminating wires, as well as assembling connectors and other hardware. 
  • Box Build and System Integration: This involves assembling various components, including PCBs, cables, power supplies, and enclosures, into a complete unit. EMS providers handle everything from mechanical assembly and wiring to software loading and system testing. 
  • Electromechanical Assembly: This combines electronic components with mechanical parts, such as motors, gears, and switches. EMS providers possess the expertise to integrate these elements seamlessly into a functional product. 
  • Final Product Assembly and Testing: The culmination of the manufacturing process, this involves assembling all the sub-components into the final product, packaging it, and conducting final testing to ensure functionality and quality. 

2. Design & Engineering Support: Beyond Manufacturing

Many EMS providers offer design and engineering support services, adding value beyond simply assembling components. These services can include:

  • Design for Manufacturing (DFM) and Design for Assembly (DFA): These crucial processes ensure that the product design is optimized for efficient and cost-effective manufacturing. DFM focuses on simplifying the manufacturing process, while DFA focuses on making the product easy to assemble. Watch this video to learn more.
  • Prototyping and New Product Introduction (NPI): EMS providers assist with prototyping and NPI, helping companies bring their new products to market quickly. This includes rapid prototyping, pilot production runs, and design validation. Read our detailed blog on How an EMS can supercharge your PCB Prototyping.
  • Engineering Change Orders (ECOs) and Product Lifecycle Management: EMS providers manage ECOs, implementing design changes and updates throughout the product lifecycle. They also assist with product lifecycle management, ensuring that products are manufactured and supported throughout their lifespan.
  • Test Engineering and Development: Developing and implementing test strategies is critical to ensuring product quality. EMS providers design and build test fixtures, develop test software, and perform various types of testing, including functional testing and in-circuit testing. 

3. Component Sourcing & Procurement: A Critical Link in the Chain

Effective component sourcing and procurement are essential to the success of any electronic product.

EMS providers offer:

  • Global Sourcing and Supply Chain Management: EMS companies have established networks of suppliers around the world, enabling them to source components at competitive prices. They manage the entire supply chain, from supplier selection and qualification to procurement and logistics.
  • Inventory Management and Control: EMS providers can manage inventory levels, ensuring that components are available when needed while minimizing inventory holding costs. They use sophisticated inventory management systems to track component usage and forecast demand.
  • Component Engineering and Obsolescence Management: EMS providers can assist with component selection, ensuring that the right components are used for the application. They also manage component obsolescence, identifying and replacing obsolete components to ensure long-term product availability.

4. Testing & Quality Control: Ensuring Excellence

Quality is paramount in the electronics industry. EMS providers employ a variety of testing and quality control measures:

  1. Automated Optical Inspection (AOI): AOI systems use cameras to inspect PCBs for defects, such as missing components, incorrect placement, and solder bridges.
  2. In-Circuit Testing (ICT): ICT uses probes to test the electrical connectivity of components on the PCB, identifying shorts, opens, and other faults.
  3. Functional Testing: Functional testing verifies that the product performs its intended function. This may involve running software, simulating real-world conditions, and measuring performance parameters.
  4. Quality Management Systems (ISO 9001, etc.): Reputable EMS providers adhere to international quality standards, such as ISO 9001, demonstrating their commitment to quality and continuous improvement. Learn more about ISO standards here.

Read our blog on Quality Testing for Prototypes. 

5. Logistics & Fulfillment: Getting Products to Market

The final stage of the manufacturing process involves getting the finished products to market. EMS providers offer:

  • Warehousing and Distribution: EMS companies can provide warehousing and distribution services, storing finished products and shipping them to customers.
  • Order Fulfillment and Drop Shipping: EMS providers can handle order fulfillment, including picking, packing, and shipping orders directly to customers. They can also offer drop shipping services, where products are shipped directly from the manufacturing facility to the end customer.
  • After-Sales Support and Repair Services: Some EMS providers offer after-sales support and repair services, providing technical assistance and repairing defective products.

Conclusion

The comprehensive suite of services offered by EMS providers empowers companies to streamline their electronics manufacturing process, reduce costs, and focus on their core competencies. From design and engineering to manufacturing, testing, and logistics, EMS providers act as a strategic partner, helping bring innovative electronic products to life. In the following sections, we will discuss how to choose the right EMS partner for your specific needs and explore the latest trends shaping the EMS industry.

EMS for Different Industries: Tailored Solutions for Diverse Needs

Electronic Manufacturing Services (EMS) providers play a crucial role across a wide spectrum of industries, each with its unique requirements and challenges. From the stringent quality standards of medical devices to the ruggedness demanded by aerospace applications, EMS providers adapt their expertise and processes to meet the specific needs of diverse sectors.

Aerospace and Defense: Mission-Critical Reliability

  • High-Reliability Components: Aerospace and defense applications often require components that can withstand extreme temperatures, vibration, and shock. EMS providers must have expertise in sourcing and handling these specialized components.
  • Traceability and Documentation: Meticulous traceability and documentation are essential for ensuring the quality and reliability of aerospace and defense products. EMS providers must have robust systems in place to track every component and process.
  • Long Product Lifecycles: Aerospace and defense products often have long lifecycles, requiring EMS providers to manage component obsolescence and ensure long-term product availability.
  • Ruggedization and Environmental Testing: Products must be designed to withstand harsh environments. EMS providers conduct rigorous environmental testing, including temperature cycling, humidity testing, and vibration testin

Automotive: Meeting Stringent Automotive Standards

The automotive industry presents its own set of challenges, including high production volumes, strict quality requirements (e.g., IATF 16949), and demanding environmental conditions. Recently we were engaging with a popular luxury EV company in America. Their quality requirements are extremely stringent as they have to provide warranties to their customers to adhere to the laws.  EMS providers serving this sector must:

  • Automated Manufacturing: High production volumes require highly automated manufacturing processes to ensure efficiency and consistency.
  • Zero-Defect Quality: The automotive industry demands near-perfect quality. EMS providers must have robust quality control systems in place to minimize defects.
  • Environmental Robustness: Automotive electronics must withstand extreme temperatures, vibration, and humidity. EMS providers must use appropriate materials and processes to ensure reliability.
  • Supply Chain Management: The automotive supply chain is complex and global. EMS providers must have expertise in managing this complex supply chain and ensuring timely delivery of components.

Consumer Electronics: Balancing Cost and Innovation

The consumer electronics industry is characterized by rapid innovation, short product lifecycles, and intense price competition. EMS providers serving this sector must:

  • Cost-Effectiveness: Consumer electronics manufacturers are constantly looking for ways to reduce costs. EMS providers must offer competitive pricing and efficient manufacturing processes.
  • Rapid Prototyping and NPI: The consumer electronics market moves quickly. EMS providers must be able to rapidly prototype and introduce new products to market.
  • High-Volume Manufacturing: Consumer electronics products are often manufactured in very high volumes. EMS providers must have the capacity to handle these large volumes.
  • Miniaturization and Advanced Packaging: Consumer electronics products are becoming smaller and more complex. EMS providers must have expertise in miniaturization and advanced packaging technologies.

Industrial Automation: Reliability in Harsh Environments

Industrial automation products often operate in harsh environments and require high reliability. EMS providers serving this sector must:

  • Ruggedization and Durability: Industrial automation products must be designed to withstand extreme temperatures, vibration, and other harsh conditions.
  • Long Product Lifecycles: Industrial automation products often have long lifecycles, requiring EMS providers to manage component obsolescence and ensure long-term product availability.
  • Specialized Testing: Industrial automation products may require specialized testing to ensure that they meet specific performance requirements.
  • Safety and Compliance: Many industrial automation products must comply with strict safety regulations.

Medical Devices: Uncompromising Quality and Regulatory Compliance

The medical device industry is subject to stringent regulatory requirements (e.g., FDA regulations) and demands the highest levels of quality and reliability. EMS providers serving this sector must:

  • Regulatory Compliance: EMS providers must comply with all relevant regulations, including FDA regulations for medical devices.
  • Quality Management Systems: Robust quality management systems are essential for ensuring the safety and efficacy of medical devices.
  • Traceability and Documentation: Meticulous traceability and documentation are required for medical devices.
  • Sterilization and Biocompatibility: Some medical devices require sterilization or biocompatible materials. EMS providers must have expertise in these areas.

Telecommunications: High-Speed and High-Frequency Expertise

The telecommunications industry requires expertise in high-speed and high-frequency electronics. EMS providers serving this sector must:

  • High-Speed PCB Design and Assembly: Telecommunications equipment often requires high-speed PCB design and assembly to ensure signal integrity.
  • RF and Microwave Expertise: Many telecommunications products involve RF and microwave technologies. EMS providers must have expertise in these areas.
  • Testing and Validation: Thorough testing and validation are essential for ensuring the performance and reliability of telecommunications equipment.
  • Network Infrastructure: EMS providers may be involved in the manufacturing of network infrastructure equipment, such as routers and switches.

Other Industries

Beyond these key sectors, EMS providers also serve a multitude of other industries, including:

  • Energy: Manufacturing electronics for renewable energy systems and smart grids.
  • Security: Producing electronic components for security systems and surveillance equipment.
  • Transportation: Building electronics for trains, ships, and other transportation systems.

Conclusion

The adaptability of EMS providers is a key factor in their success. By tailoring their services and expertise to the specific needs of each industry, they enable companies to focus on their core competencies while trusting their manufacturing to a specialized partner. Whether it’s the stringent quality requirements of medical devices or the cost pressures of consumer electronics, EMS providers offer valuable solutions across the industrial landscape.

Choosing the Right EMS Provider: A Comprehensive Guide

Selecting the right Electronic Manufacturing Services (EMS) partner is a critical decision that can significantly impact the success of your electronic product. A strong partnership can lead to cost savings, faster time to market, and improved product quality. Conversely, a poor choice can result in delays, cost overruns, and even damage to your brand reputation. This comprehensive guide outlines the key factors to consider when choosing an EMS provider, empowering you to make an informed decision.

1. Defining Your Needs: The Foundation of Your Search

Before you start contacting EMS providers, it’s crucial to clearly define your specific needs and requirements. This will help you narrow your search and ensure that you’re targeting providers that are a good fit for your business. Consider the following:

Choosing the right Electronic Manufacturing Service

2. Key Factors to Consider When Evaluating EMS Providers

Once you have a clear understanding of your needs, you can begin evaluating potential EMS providers. Here are the key factors to consider:

Factors to Consider Choosing an Electronic Manufacturing Service

3. Due Diligence and Vendor Selection Best Practices

  • Request for Information (RFI): Start by sending RFIs to potential providers to gather information about their capabilities and services.
  • Request for Quote (RFQ): Once you’ve narrowed your list, send RFQs to get detailed pricing and lead times for your project.
  • Site Visits: Visit the facilities of your top contenders to assess their manufacturing capabilities, quality control processes, and overall operations.
  • Technical Discussions: Schedule technical discussions with the provider’s engineering team to discuss your product in detail and ensure that they have the necessary expertise.
  • Contract Negotiation: Carefully review the contract terms and conditions before signing. Make sure that all aspects of the agreement are clear and mutually agreeable.

4. Building a Strong Partnership

Choosing an EMS provider is not just a transaction; it’s the beginning of a long-term partnership. Here are some tips for building a strong relationship with your chosen provider:

  • Open Communication: Maintain open and regular communication with your provider to ensure that you’re aligned on project goals and timelines.
  • Collaboration: Work collaboratively with your provider to solve problems and improve processes.
  • Mutual Respect: Treat your provider as a valued partner and respect their expertise.
  • Long-Term Vision: Focus on building a long-term relationship with your provider, rather than just focusing on short-term cost savings.

Conclusion

Choosing the right EMS provider is a complex but crucial process. By carefully considering the factors outlined in this guide and conducting thorough due diligence, you can find a partner that will help you bring your electronic products to market successfully. Remember that the best EMS provider is not necessarily the cheapest, but rather the one that best meets your specific needs and offers the best overall value.

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Education for EMS

Educational Options to enter EMS Industry
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The electronics manufacturing services (EMS) industry in India has been growing rapidly over the past few years, and the growth rate is expected to continue in the future. According to a report by Research And Markets, the Indian EMS market was valued at USD 35.4 billion in 2020, and it is expected to grow at a compound annual growth rate (CAGR) of 21.8% from 2021 to 2026. Any growing industry also needs skilled people to aid its growth.

An electronics manufacturing services (EMS) company typically employs a range of professionals with different skills and expertise.

  • Manufacturing engineers responsible for optimising the manufacturing process and designing production systems.
  • Quality Control Engineers who inspect products, conduct tests and implement quality control procedures to ensure that products are manufactured to specifications.
  • Supply Chain Managers and Logistics Co-ordinators who work with suppliers to ensure on time delivery and manage inventory levels for production schedules.
  • Assemblers / Technicians: This role is the backbone of the industry and many who move on to quality control and supply chain management, make their start as assemblers / technicians.

Getting a start in this sunrise industry requires a combination of education and practical training. For students or even those who are mid-career, wondering what will help you, here are a few thing to consider:

  1. Get a Technical degree: This is the best option for students who are still planning their education. Pursuing a degree in electrical engineering, electronics engineering, or a related technical field can provide a strong foundation for a career in EMS. These degree programs typically cover topics such as circuit design, digital electronics, microcontrollers, and power electronics.
  2. Join a Vocational training program: Vocational training programs, such as those offered by ITI’s or trade specific orgalisations like Electronics Sector Skill Council, can provide hands-on training in electronics manufacturing. These programs may cover topics such as soldering, PCB assembly, and quality control. Vocational training programs can sometimes be regarded as less prestigious but there is no parallel to the practical learning they offer and their grounded and quick start to careers. 
  3. Certifications: Obtaining industry certifications, such as IPC-A-610 (Acceptability of Electronic Assemblies) and IPC-J-STD-001 (Requirements for Soldered Electrical and Electronic Assemblies), can demonstrate expertise in specific areas of electronics manufacturing and can be very valuable.
  4. Internships or apprenticeships: Participating in an internship or apprenticeship program with an EMS company can provide valuable on-the-job training and help you gain practical experience in electronics manufacturing. Podrain has been offering paid internships since inception. Some of our interns go back to studying but many move on to working with us or other peers in the EMS industry

Overall, a combination of technical education, hands-on training, and industry certifications can help prepare you for a successful career in Electronics Manufacturing Services.

For more information on careers at Podrain write check our website and write to us as [email protected]

Note: Post generated with assistance from ChatGPT3

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PCB Components

Why We Need to Near Source Electronic Components
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Why we need to Near Source Electronic Components

The past two years have offered some harsh lessons to all in the PCBA industry on the value of inputs. For a long time, the cost paid was the only consideration. The supplier might be located on the other side of the world, but if the cost was marginally lower, the choice was clear. But the pandemic changed all that. The cost of logistics / transport that used to be negligible ballooned beyond expectations. And for some parts – no matter what cost we were willing to pay – the availability just did not exist.

PCB Assembly

PCB Assembly

In India, we import more than 90 percent of the components required for assembling PCBs locally. These imports come from 4 countries – China, Taiwan, Vietnam, and Malaysia. A break down at one source country, as we saw in 2020 and 2021, drives up the cost of doing business for all.

Here’s our experience with supply trends for some of our major inputs:

Bare PCBs:  

Bare PCBs are the stronger point in our supply chain. We have seen reliable suppliers of Bare PCBs based in Tamil Nadu and in Gujarat. We (and many of our customers) have been able to source Bare PCBs in the past 18 months with no major issues. Supply lead times have remained consistent and price increases have stayed within tolerable limits.

Assembly Machinery: 

Machinery needed for PCBA is mostly manufactured outside India by majors like Yamaha, Fuji, Panasonic, and Siemens. While prices have stayed stable, lead times have increased considerably. What used to be available in 4 weeks now takes 4 months to get delivered. We’ve had to plan and order earlier than ever before for any capacity enhancements or repairs and replacements.

Other Components / Services: 

Integrated Circuits (IC’s), their component resistors, capacitors et al, solder paste etc. are mostly imported and have all seen prices and lead times zoom up. 52 weeks is now the new normal! Companies like Micron, TI, Cypress, Infineon, Latis, NXP have factories based in China, Taiwan, Malaysia, and Indonesia. When supply and manufacturing centers were shut and major ports slowed down, component shortages have visibly hit every industry from automotive to computers and mobile phones. Even stocks held by major distributors Avnet, Future, Arrow, or online suppliers like Digikey, and Mouser could not tide the industry over for long.

This is the area where India needs to attract investment and build manufacturing capacity. 

What Next:

The government has already recognised the need for building an electronics components manufacturing ecosystem. It is doing its part by offering Production Linked Incentive programs and other sops to encourage manufacture of components in India. It is now up to us in Industry to pick up the challenge and partner in building a strong local eco-system for components. 

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Complex PCB Assembly

Complex PCB Assemblies
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Electronics have become essential to daily life. Everything from refrigerators to military aircraft contains electronics. Today’s critical advanced assembly challenges mainly fall into three categories: performance, usability and productivity. To build and visualise product designs quickly and economically, engineers must address all these challenges.

On the other hand, manufacturing techniques are becoming more advanced and aesthetics are increasingly in demand. Project lifecycles and budgets are constrained. Sometimes, these constraints mean that DFM standards are overlooked in PCB design. For example, if the PCB has to fit in a box of fixed dimensions, the PCB design has to be tweaked accordingly. Or, components with different reflow profiles may be used on the same sid

Newer design houses or inexperienced engineers and designers may be prone to these mistakes. But not validating designs with tool and industry standards is bad practice. Here are just a few examples:

Pad mismatch

 If the copper termination pad separates partially or completely from the board, it can be hard to identify the fault; the pad may look intact as the solder usually remains attached to the component. The cause is usually mechanical strain that begins during testing, manufacturing, vibration while being transported or even when connectors are attached. PCB performance is impaired and performance is inconsistent. Extensive or even destructive testing may be required to positively identify the cause. Podrain follows a painstaking process to minimise the risk of damage from pad mismatch at each step.

No silkscreen. 

The silkscreen does not impact the electrical functionality of a PCB, but it is still extremely valuable as it provides essential information when assembling the PCB. It provides simple visual feedback that helps to catch deeper problems. It is not merely for aesthetic purposes. It is information that should not be separated from the board. Unique ID numbers, warning symbols, certifications etc. should be displayed on the board. At Podrain, we treat correct and comprehensive silkscreens as an integral part of the PCB.

THT vs. SMT components. 

When SMTs were developed in the 1980s they were expected to completely replace THTs. But THTs and SMTs are not always interchangeable. THTs offer reliable and useful in test and prototyping applications where frequent manual adjustments and replacements are needed. But SMTs are almost always more efficient and cost-effective. Podrain’s extensive experience in a wide range of applications gives us the expertise to know which type of components to use for a given project.

Incorrect polarity marking. 

To prevent polarised component packages from being inverted during assembly machine setup or manual soldering, accurate polarity marking is critical. It is only necessary for land patterns that have a specific rotation during assembly. Incorrect polarity markings can cause equipment damage, short-circuiting, serious injury, fires or even explosions. Podrain follows stringent Post Assembly Inspection Process protocols to visually validate that assembly insertion is done correctly

Incorrect component separation. 

Most designers are used to PCB clearance rules for spacing between traces in a single layer. However, many design houses overlook PCB clearance between layers. Today’s circuit designs often involve a single PCB with power and controls on the same substrate. This may put high-voltage traces close to low-voltage signals, creating a risk of arcing. The resulting sparks can permanently damage the port of the low-voltage component. Podrain designers and engineers keep ourselves up to date on the latest IPC-2221B design standards to ensure optimum manufacturability with minimum risk.

Podrain’s customers have brought us some interesting design challenges.

A top manufacturer of electric vehicle charging stations found that the PCBA yield was below 90%, lower than expected. The company approached Podrain to investigate. The issue was all the more challenging because the assembly was ROHS. Planning and finding the right profile, especially on a PCB that uses BGA + LGA, is an art.  By devoting our experienced people to solve this, we iterated through a range of 11 temperature profiles in a reflow oven within just 2 days to find the solution.

Another customer set us the challenge of setting the right profile for a board designed with a heavy BGA connector having multiple ceramic BGAs, including micro BGAs, on a 2mm thick PCB. The issue is these kind of connectors use very high temperature for soldering. 265 degree Celsius plus is needed for soldering but a normal BGA can tolerate only 245 to 255 degree Celsius. We designed and conducted multiple trials by changing the solder paste for each profile. After 15-20 trials supported by some fixtures, we were able to determine the best profile for the customer’s board.

Podrain has solved many such complex assembly design challenges for our customers.

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capital_access_money

Access to capital: the Msme money maze
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The government’s Make in India strategy demonstrates how important MSMEs are to India’s growth story, but capital is still hard to get. If you are considering launching a startup, here are some things to keep in mind:

KEEP FRIENDS, FAMILY AND FOREIGN FUNDS CLOSE

Most credit schemes are aimed at MSMEs that are at least three years old. If your company is newer, informal sources like family and friends must be part of your fundraising strategy. Quite often, this means looking abroad for help. Even if you are looking at a VC / PE funding, the Indian ecosystem is in its infancy and you are likely to go beyond India’s borders. But this can lead to a problem. Indian financial institutions need at least 75% Indian ownership to qualify you for most of their loan products. This is intended to encourage Indian entrepreneurs, but as a startup that might be considering all options for support – make sure foreign investors hold less than 25%.

CAUTION: COLLATERAL AHEAD!

Typically, financial institutions ask for collateral that equals (or exceeds) the loan amount. This can be a term deposit or a mortgage on your home. Indian financial organizations are very cautious about lending. Read the loan terms carefully and include all supporting documentation with your application. 

PLEASE MIND THE GAP

The Small Industries Development Bank of India (SIDBI) was established to bring MSMEs and capital together. This is excellent news for MSMEs but the execution is not perfect. Rules can be unclear and confusing. Decision-making does not always follow the on-paper criteria. If your application is rejected, you may not know why.

Government schemes to support MSMEs working on Covid-19-related projects face similar challenges. Companies that qualify for credit on paper may still be rejected without an explanation.

WHAT CAN CHANGE

Podrain’s experience has taught us that patience is key. It also helps to have an experienced, trusted financial advisor or mentor who understands the options and provides guidance on processes and documentation. Some signposts and directions from financial institutions will make navigating easier.

MSMEs should be able to quickly and easily understand what each regulator is responsible for. Clearly stated eligibility rules for each scheme and a simple explanation of the risks and benefits of each option will help entrepreneurs who are not always financial experts make the right choice. A single-window approach to clearances will make MSMEs’ search for capital much easier. Regulators can also help to match MSMEs with the right funding source for their needs. We can then rely on financial institutions and their lending officers for guidance on the right capital products and schemes. 

Financial institutions also need to look beyond traditional collateral-based criteria. Very often these show only the borrower’s existing financial strength and not the intent to repay. To help new MSMEs get started, lenders may consider performance-based criteria to approve loans. For example, whether a startup pays its employees’ salaries, its taxes, and its statutory dues (GST, PF, etc.) on time is a good indication of its intent to pay. Market-based criteria used by PE/VC funds may also be used with modifications that reflect the lower risk appetite of the lender. These forward-looking strategies are consistent with the idea of financial institutions as partners in the Indian MSME growth story.

By adopting a partnership mindset, financial institutions can make capital more easily accessible to MSMEs who want to Make in India.

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Shyam and Rajesh

SiliconIndia Article
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SiliconIndia

Printed Circuit Boards (PCB) constitute an integral part of many (expensive) electronic devices. The costs of failure of undertaking a full production run without adequate testing of the PCB are

very high. The ideal answer is a strong prototyping process which can help in identifying any design or performance issues. However, finding the right Electronic Manufacturing Service (EMS) partner for this early stage where volumes are small and the turnaround needs to be quick can be challenging.

Podrain Electronics, unlike other EMS providers ca- ters to this niche market of prototyping on small volume. Having high-end machines to build and test PCBA’s, Podrain caters to the complete needs and requirements of the customer. The company specializes in the supply of products with a fast turnaround without compromising on the rigor of testing. The typical customers for Podrain’s prototyping services are Start-ups and hardware design companies. “Prototyping needs us to be very flexible,” explains Shyam Chandran, CEO of Podrain Electronics. “We work most Sundays. There was one occasion when a client came in at 8 PM in the evening, wanting some- thing to be ready for a VC presentation the next day. We worked overnight. While we charge a higher price for such a quick ask, the result for our client can be priceless”, adds Shyam. The company has expertise in delivering complex assembly – BGA, PoP, LGA and other new modules that are introduced in the market. Podrain has the capability to assemble thin as well as flexible PCBs.

“Podrain Electronics caters to the niche market of prototyping on small volume.”

Rajesh Rajagopal, Director of Operations says, “We are seeing a trend for slimmer devices overall. One of our builds was for a smartwatch prototype for a leading Indi- an brand determined to deliver a world class product. We had to assemble a PCB of 0.4 mm thickness with a 0.2 mm BGA package. We constantly invest in keeping up our learning so that we can deliver the type of cutting edge products our clients design. We love this challenge

Shyam and Rajesh have both been in the EMS space for over 20 years with different organizations. They met while working for an EMS company in 2013. They put together the idea of Podrain Electronics specifically to cater to a gap they saw – an engaged EMS willing to work in the prototyping space using the type of high-end machines that the final manufacturing process will involve. In the past 3 years they have found many takers for these services. Shyam takes care of the business side, while Rajesh manages the technical and operations aspects.

The duo has big plans. Podrain is ISO 9001:2015 certified. The company has continued to invest in new- er machines including an X-Ray inspection machine. In addition to PCB assembly, Podrain does complete box build assembly. A set of reliable partners supply the plas- tic enclosures, sheet metal and cable harnesses which are then assembled, tested and packed out of Podrain. They are also doing evaluation kits for silicon chips for leading semi-conductor manufacturers.

The prototypes the company has partnered on are maturing into higher volumes and clients are requesting pro- duction support. The current location in Bommanahalli is just off the ORR and close to the start-up hubs of Koramangala, HSR Layout, Indiranagar, Jayanagar etc. But it’s pretty full. “We need to grow to keep up with our clients. We hope to start a bigger production facility in the near future. Perhaps in Electronic City, Bengaluru”, says Shy- am. And what about the original prototyping idea? Shyam further adds, “We will continue with this and start more prototype friendly units”. Rajesh continues, “Perhaps even one in Austin, Texas. The future is bright for us”.

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India

Is India Poised for an Electronic Manufacturing Services boom?
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PODRAIN ELECTRONICS: PROTOTYPE PCBAS WITHOUT COMPROMISING ON QUALITY.

India’s Electronics Manufacturing Services Industry is poised to grow six-fold to $152 Billion in the next 5 years according to some industry body estimates. Podrain certainly believes this growth forecast is possible.

Our increasing participation is being driven by a few factors. 

We have a large market within India for electronics in different sectors. Whether it is cars and tyres, electronic vehicles and their charging stations or medical equipment, products from all of these industries are set to have high-end electronics embedded in them. Products that were previously electrical or mechanical are being upgraded with the addition of electronics. Intended for both the global and local markets, India’s 700+ electronics manufacturing services companies can all grow and there will be room for more players too. The speed with which Ola Electric has ramped up its manufacturing capacity or the success that Dixon Technologies has seen in contract manufacturing are examples that have been making the news in recent times. 

At Podrain, we have witnessed this potential over the past 4 years. We’ve worked with traditional companies looking to move into the new digital age. Can adding electronics help a tyre manufacturer offer new business models? Can a traditional watch manufacturer move into the digital wearables business? Can a UPS perform better, delivering uninterrupted up time despite frequent power failures? 

We’ve also worked with startups building products that are completely new and innovative – a medical testing device smaller than your set top box. Or an under the pillow device that can revolutionise healthcare. Or a monitoring system that allows parents to safely track their children. The possibilities imagined by our clients promise an exciting future. 

Besides the push by private companies there is increased government focus on improving indigenous manufacturing capabilities in defence and aerospace. 

Apart from demand side drivers, there are supply side factors influencing India’s position in the Electronics Manufacturing space. COVID 19 disrupted supply chains globally and many  players, who had never looked past China are now looking at other countries to base manufacturing operations. Major global manufacturers such as Hon Hai, Electroplast, Wistron are setting up facilities in India. The government has also been incentivising manufacture of electronics products with tax breaks, more attractive labour laws, SEZ creation etc. 

The future looks bright for the Electronics Manufacturing Sector globally and for India in particular.

 
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