Outsourcing of Testing to Electronic Manufacturing

Service Providers Gains Momentum Among OEMs

Research PREVIEW for

Test & Measurement in the Global Electronics

Manufacturing Services Market

(ND1C-28)

Key Findings

• There is increasing demand from original equipment manufacturers (OEMs) for electronics

manufacturing services (EMS) providers to provide test and engineering services.

• Testing services provided by EMS providers include defect analysis, in-circuit testing (ICT),

inspection with image processing and functional testing. Testing services include automatic

optical inspection (AOI), burn-in, and X-ray inspection.

• OEMs continue to decide on the cost, quality, and schedule for printed circuit boards (PCB) or

modules in the contract drawn up between EMS providers and OEMs.

• Typically, OEMs supply EMS providers with the specific test equipment with which to test the

PCB, which usually happens in the case of critical applications such as medical devices.

• In another form of engagement, OEMs demand the use of specific test equipment, and EMS

providers deliver the services based on the specifications.

• In the third form of engagement, OEMs only provide the test specifications and rely on the

manufacturing ability of the EMS providers to devise the best possible solution.

Source: Frost & Sullivan analysis.

ND1C-28

The Full Analysis Features the Following Content

Section Slide Numbers

Executive Summary 4

Market Overview 10

Total Market -

• External Challenges: Drivers and Restraints 17

• Forecasts and Trends 28

• Market Share and Competitive Analysis 52

Test and Measurement Equipment Providers: Gap Analysis 57

North America Breakdown 66

Western Europe Breakdown 69

Central and Eastern Europe Breakdown 73

Asia –Pacific Breakdown 76

Rest of World Breakdown 80

The Last Word 83

Appendix 86

ND1C-28

Executive Summary — CEO’s Perspective

2 The cost of test equipment is key in the selection of test equipment for testing services.

3 The market is driven by strong demand for testing services from the telecommunication and consumer electronics verticals.

4 Included in full report

1 The outsourcing of testing services to EMS providers will increase because of innovation in consumer electronics products.

Source: Frost & Sullivan analysis.

ND1C-28

Market Drivers & Restraints

ND1C-28

Key Questions the Full Analysis Answers

Is the market growing, how long will it continue to grow, and at what rate?

Are the existing competitors structured correctly to meet customer needs?

Is this an industry or market? Will these companies/products/services continue to exist or will they get acquired by other companies? Will the products/services become features in other markets?

How will the structure of the market change with time? Is it ripe for acquisitions?

Are the products/services offered today meeting customer needs or is there additional development needed?

Are the vendors in the space ready to go it alone, or do they need partnerships to take their business to the next level?

Source: Frost & Sullivan analysis.

ND1C-28

Partial List of Market Participants

• Jabil

• Celestica

• Enics

• Videoton

• Kimball Electronics Group

• PartnerTech

• Neways Electronics

International N.V.

• Kitron

• Asteelflash

• Selcom Group

• NOTE

• Epiq Systems, Inc.

• Benchmark Electronics, Inc.

• Electronic Network Inc.

• IPTE

Source: Frost & Sullivan research.

ND1C-28

Interested in Full Access? Connect With Us

Ariel Brown Associate Corporate Communications

(214) 247-2481

Ariel.brown@frost.com

Research Authors

Aravind Seshagiri Industry Manager Measurement & Instrumentation

Kiran Unni Research Director Measurement & Instrumentation

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