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Thread: Where are the electronic assembly markets?

  1. #1
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    Where are the electronic assembly markets?

    Assuming I've a new concept of a high speed surface mount assembly machine and I'm well capable of building a prototype. Where else could I sell it, if not to China?
    Further assuming electronic assembly is done to 60% in China. Where are the other markets? Can anyone point me to a more accurate market study than my own guess?
    Attached Thumbnails Attached Thumbnails Where are the electronic assembly markets?-market.jpg  


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    No numbers here either Global Surface Mount Technology (SMT) Equipment Market to Reach US$11.2 Billion by 2017
    unless I'm willing to pay $4,800 for the full study.
    However, some comforting words about market recovery.


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    Well China and India are just going to make their own machines and not buy western technology (unless they buy ONE, you know what I mean).

    And most of the west will buy new machines if they have big budgets and used/surplus machines if they have small budgets. Or (possibly more likely) western companies will just out-source their SMD and other work to the cheap shops in China and India since those countries are getting so much better now at English language communications and fast postage, and their incredibly low labour costs makes is more and more silly trying to manufacture in the west.

    Most of the PCB makers in Australia have closed down now as electronics manufacturers here just outsource work direct to China now. The Australian SMD and soldering production will be next to go.


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    Looking at this thread I'm not afraid of Chinese copies
    http://www.cnczone.com/forums/vertic...ml#post1007663
    It takes many years experience to make a copy work well.
    I wouldn't even mind selling to the Chinese market, but for an entrepreneur like me, this market is inaccessible, unless I would approach larger US or German corporation, who are already established in China.
    New projects will likely require massive funding to make an impact and be recognized as a potential competitor.
    Nowadays even angel investors in California sitting tied on their money and I don't have any money to spend either.
    However, I'll keep on posting open source ideas. Maybe one day I find an investor for ideas I have not revealed yet.


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    Some American companies have brought their assembly in house to reduce lead times, reworks, etc. One that comes to mind is Gecko Drive. Mariss has discussed his operation in several threads here on the zone.

    Matt


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    Quote Originally Posted by stewi View Post
    Looking at this thread I'm not afraid of Chinese copies
    ...
    It takes many years experience to make a copy work well.
    ...
    Unfortunately not so much time is needed these days. Basically they just need to buy a mechanical product, pull it apart and spend a couple of weeks measuring all the parts and whipping up some CAD models. Then they just reproduce it using their CNC machines and masses of very cheap human labour.

    Keebler303- Yes some smaller manufacturers are still doing in-house. These are some of the people buying 2nd hand PNP or new low-end PNP (Madell etc) for $10k to $20k price.

    But over the last years I've watched a few trends happening. Where people used to make their own PCBs for hobby and small manufacture now they email a file and in a few days receive back perfect PCBs. Almost nobody makes PCBs at home any more.

    The next step is soldering and SMD, people are sending it out more and more to production houses, and it's getting common too for the houses to stock the parts at least all the common stuff like resistors and caps and common semis.

    So int he future I think it will basically go like this;
    1. You send a file, they make your PCB,
    2. They say "Do you want fries (SMD) with that?"

    People will say "Yes" and get back a finished PCB with all parts soldered, at a competitive price.

    That kind of thing is also getting common with production houses to do contract CNC/lasercutting/printing etc.

    Quote Originally Posted by stewi View Post
    ...
    However, I'll keep on posting open source ideas. ...
    It's a bit of a catch-22 of course, if you post as open source you can not sell the idea or patent it, and someone might even start in competiton making stuff based on your ideas before you can even start production of your own ideas.


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    Thanks for your insight feedback. I have some good friends small shop owners, who are trying to get into the online ordering market as well. All I heard it is tough and already very competitive.
    However, although I like the challenge of the high speed machines, this market will likely always go to cheap labor countries. That said, there may be a market for low cost and bench top machines. Low end usually also means no good, the Madell machine, from what I see in videos, may be here an exception.
    Assuming I could re-focus on a small machine, likely single head, capable of 0201 to BGA, vision system, some feeders for under $10k, I could likely make these until copy clones from China.
    No matter from which angle I look at surface mount assembly machines, I would loose.
    Rather than loosing some $100k investment in a new start up business, I don't loose anything in posting some of my ideas in open source feeder and rotary head.
    Sure, this forum has also Chinese attention and they read this stuff as well. Yet, in open source everybody has a chance to make a better product out of it, but now they can do it before this product comes out of China.


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    >>Low end usually also means no good, the Madell machine, from what I see in videos, may be here an exception.

    View topic - Madell SX1020 Pic & Place machine • adafruit industries • Customer Support Forums, DIY Electronics, Open Source Hardware, Arduino

    Not a lot of good things to say about the Madell machine.


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    just to put another thought out there, but look at companies like makerbot, they produce a product that is inferior in every way to the commercial systems, but with open source and a good price point they have created a massive amount of goodwill and publicity.

    Their last round of investment brought in $10 mil.


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    Open source for a company (Makerbot) in California is different from my situation living in Georgia.
    I used to hear people talking about new ideas in California all the time, at breakfast in Los Gatos or at the San Jose airport. They have to be open to investors or potential partners and at the end of the day they have likely revealed 3 to 4 times their ideas of the next I-pod.
    Georgia has one of the highest unemployment rates of the nation.
    Should I ask my neighbor sitting in the Marta on the way to the airport, if he wants to invest in my ideas? According to the music, he is listening, he hates me, or actually he hates everybody and everything.
    At age of 6+, bi-lingual, bi-cultural I know quite a bit about engineering. I don’t have money to invest and hardly find anybody here to invest in my ideas.
    I do admit, that I use this forum advertising my concepts, hoping somebody in California will find me. Since I’m also contributing to this site, the operators of this site shall forgive me.


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    stewi: they got their investment due to having a strong brand, market awareness and a popular product. I highly doubt Foundry Group are interested in the technology per se. In a sense their web address had more to do with their investment opportunities then their physical one. That said im sure California has some advantages in terms of networking.

    The benefits of the OS approach is you can get your ideas out there, and recruit people to help with the design / testing effort, in the hopes of getting enough critical mass to attract investors. The downside is you end up loosing some control of the idea, and you loose the commercial routes (patent, licence) but from your previous posts I got the impression you weren't too keen on them from past experience.

    There are also the likes of kickstarter and other social investment schemes which might be useful for early-days funding.

    for a good example of what distributed teams can achieve, check these guys out: http://www.wikispeed.com/
    Last edited by daedalus; 01-19-2012 at 07:44 AM. Reason: added link and missing sentance


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    Can I make a quick poll, who would be interested in a Wikipick&place site?


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