Global Citizenship: Together for a Perfect PCB Solution
Smart Automation: Odd-form Assembly—Dedicated Insertion Equipment Matters
Nolan’s Notes: Everyone Has Their Eye on India
Automotive EMS: Going Beyond Assembly
September 9, 2015 | Frederick Blancas, Integrated Micro-Electronics Inc.Estimated reading time: 1 minute
As the amount of electronics that go into a car increases, the car is becoming less of a mechanical thing consisting of a few electronics and more of a computer with wheels.
The electronics' share of vehicle value for a state-of-the-art automobile is already at 40% for traditional, internal combustion engine cars, and it could reach 75% for electric or hybrid electric vehicles. This percentage value will definitely rise in the next few years.
Automotive electronics rose by 7.3% in 2014 to about $205 billion and will continue to grow at the same growth rate to 2020, at close to $315 billion based on a report by Research and Markets. The advanced driver assistance systems (ADAS) market will have a 14.9% CAGR from estimated revenue of $39 billion in 2015 to $78.2 billion in 2020, according to Industry ARC.
According to New Venture Research, of the $91.2 billion worldwide automotive electronics assembly value in 2014, 86% was done in-house by the OEMs; 1% by the ODMs; and 13% by the EMS providers.
The automotive industry continues to grow rapidly as a high-growth market for EMS providers as it transitions steadily from mechanical to electronics. The total automotive EMS value of $12.1 billion in 2014 was contributed mainly by the top players that include Flextronics International; Hon Hai Precision Industry Co. Ltd (Foxconn Technology Group); Jabil Circuit Inc.; Zollner Electronik AG; and Integrated Micro-Electronics Inc.
Merely board stuffers—these are not today’s EMS providers in the automotive space. They’ve gone far beyond board stuffing.
The EMS providers are end-to-end solution providers, assisting the automotive electronics makers or automotive manufacturers in product realization. They engage in design and product development, advanced manufacturing engineering, and test and test system development.
Their manufacturing expertise includes PCB and FPCB assembly services, module assembly, and box build assembly. They can offer high-volume manufacturing as well as low-volume and high-mix manufacturing. Some EMS companies can do product reliability and failure analysis, calibration, and product repair services.
Further, while it is common for the tier-one EMS providers to have plastic injection capability, there are also mid-tier EMS players that can offer plastic injection. We can say that the automotive EMS players have expanded their role through vertical integration and venture into the realm of non-electronics manufacturing.
Editor's Note: This article originally appeared in the September 2015 issue of SMT Magazine.
Share on:
Testimonial
"Advertising in PCB007 Magazine has been a great way to showcase our bare board testers to the right audience. The I-Connect007 team makes the process smooth and professional. We’re proud to be featured in such a trusted publication."
Klaus Koziol - atgSuggested Items
ASM Technologies Limited signs MoU with the Guidance, Government of Tamilnadu to Expand Design-Led Manufacturing capabilities for ESDM
09/15/2025 | ASM TechnologiesASM Technologies Limited, a pioneer in Design- Led Manufacturing in the semiconductor and automotive industries, announced signing of Memorandum of Understanding (MoU) with the Guidance, Government of Tamilnadu whereby it will invest Rs. 250 crores in the state to expand its ESDM related Design-Led Manufacturing and precision engineering capacity. ASM Technologies will acquire 5 acres of land from the Government of Tamilnadu to set up a state-of-the-art design facility in Tamil Nadu's growing technology manufacturing ecosystem, providing a strong strategic advantage and long-term benefits for ASM.
Variosystems Strengthens North American Presence with Southlake Relaunch 2025
09/15/2025 | VariosystemsVariosystems celebrated the relaunch of its U.S. facility in Southlake, Texas. After months of redesign and reorganization, the opening marked more than just the return to a modernized production site—it was a moment to reconnect with our teams, partners, and the local community.
Integrating Uniplate PLBCu6 With the Digital Factory Suite
09/12/2025 | Giovanni Obino and Andreas Schatz, MKS' AtotechPrinted circuit board manufacturing is rapidly changing, driven by miniaturization, stringent reliability requirements, and growing pressure for sustainable production. Meeting these challenges requires more than incremental improvements; it demands a combination of precise equipment and real-time process intelligence. The pairing of Uniplate® PLBCu6 with the Digital Factory Suite (DFS) demonstrates how hardware and software can work together to create more responsive, resource-efficient manufacturing.
WORKS Optimization from ASMPT
08/21/2025 | ASMPTWORKS Optimization from technology and market leader ASMPT is a software solution for quality-oriented and integrated process monitoring in SMT manufacturing.
New Episode Drop: MKS’ ESI’s Role in Optimize the Interconnect
08/26/2025 | I-Connect007In this latest episode, Casey Kruger, director of product marketing at MKS’ ESI, joins On the Line With… host Nolan Johnson to share how CO₂ laser technology delivers faster, more accurate vias in a smaller, more energy-efficient footprint.