Hong Kong based American Tec Co Ltd is a leading total equipment solutions provider to the global electronics manufacturing industry. The company’s business philosophy and vision is to be the preferred platform for the electronics industry. And hence the company’s business focus, organisation and processes are structured to deliver total customer satisfaction for both products and services.
In an interview with Srabani Sen of Electronics Bazaar, KH Ong, CEO, American Tec Co Ltd, talks about the company’s new brand ATS, and the current situation in the Indian SMT market.
Wednesday, January 09, 2013: EB: With the Indian government making serious efforts to boost electronics manufacturing, do you see the potential of selling more SMT machines in India in the next two years?
From the recent policies announced, the relevant authorities seem to be serious about boosting the electronics manufacturing sector with the introduction of the Modified Special Incentive Package scheme and other schemes to set up electronics manufacturing clusters. If the same policy had been implemented two years earlier, we could have expected some fruitful results by now. With the current market situation and global economy downturn, India’s electronics manufacturing industry may not be reacting positively in the short term but if the announced policies are effectively executed, we could potentially expect an increased demand for SMT machines in two to three years time. In addition, we also see the need for further review of taxation policies (such as import tax) in order to support the revival and growth of electronics manufacturing in India.
EB: Since when has American Tec been operating in India, and how has its growth been over these years?
We started our India operation in the middle of 2005. The operation does experience the same ups and downs that are characteristic of the electronics industry but we are keeping our focus on servicing our valuable customers and keeping them posted on the latest developments in technology and equipment. When the industry does recover, we will be in a position to grow with our customers.
EB: How important is the Indian market for American Tec and why?
The India market is as important to us as the rest of the Asian markets that we serve. Electronics manufacturing activities and investments in India are lagging behind countries such as China or those in Southeast Asia. However, the huge population in India as well as the growing middle class is expected to spur demand for electronic goods in the coming years. While China remains the biggest manufacturing base for now, the rapid increase in labour costs, the appreciation of the RMB as well as inflation are pushing manufacturers to explore alternatives as well as regionalise their operation. India is expected to benefit from this trend. We are already servicing Chinese manufacturers that have sites in India and we do expect to see more of such investments in the future.
EB: Of the major SMT machines, which are the models and brands that are the most popular in India and, what, according to you, could be the reason for this?
There isn’t official data on the market share of the respective manufacturers but we would assume that the first tier comprising Fuji, Panasonic, ASM, etc would still be leading in terms of the installed base. The type of products (consumer, computing, automotive, etc) does influence the ultimate choice of machines, so it is very important to understand the customers’ actual needs before putting together a solution. Pick and Place machines sell the most in India.
EB: Which verticals of the Indian electronics industry are driving the growth of the SMT equipment market in India?
Currently, the automotive industry (automotive electronics) is driving demand for SMT equipment. With the opening up of the telecom industry and increased digital urbanisation, mobile and Internet computing are expected to support further growth. New applications in LED are expected to drive demand as well.
EB: What marketing strategies do you follow in India? Are these strategies working well? Or would you like to make changes for the coming year?
India is a big country, and our business and customers are geographically scattered. As such, American Tec has adopted a regional focus approach, building success in targeted regions before expanding coverage. We do think the strategy is working out well at the current phase of development, and we will review and redefine the approach as the industry and environment changes. In conjunction with the regional focus strategy, we have also launched ATS, a label that serves to provide customers with the best suited solutions.
EB: Tell us about the new brand ATS and the plans related to its promotion.
ATS was launched in 2011 and within a span of one-and-a-half years we have successfully introduced three different solutions for our customers, namely, reflow solution, X-ray inspection solution and DMS software solution.
We actively participate in exhibitions such as NEPCON, advertise in popular magazines, have regular press releases, besides direct sales, to enhance awareness. For the Indian market, we have a demo centre in Noida, and are planning aggressive promotion activities for our ATS solutions in the coming months. Apart from this, we are actively promoting our products through sales channels, advertisements in magazines and through email direct marketing.
EB: What are the new SMT machines you have added to your product range over the last six months? How are these technologically advanced?
The new products added in the last six months are primarily our ATS reflow and X-ray inspection solutions. A notable achievement of our ATS reflow was getting IPC 9853 standard and certification. The ATS reflow solution comes with excellent thermal consistency, build quality and reliability that offer customers the most competitive option.
Our X-ray inspection solution comes with an innovative oblique CT function, which is not found in the machines of our competitors. Other advanced features include 2D and 3D imaging capabilities, fast processing speeds, as well as comprehensive image analysis.
EB: Do you have products that are cost effective and target the SME companies?
American Tec has a wide range of competitive systems that are aimed at serving different needs and customers, including the recently introduced ATS series.
We do believe that providing solutions that best meets the customer’s needs at different phase of their growth and development would be key to maintaining healthy development of the industry.
EB: Did you add new principals over the last one year?
We did not add any new principals to our product portfolio as we continue to execute our regional focus strategy. The current product portfolio that we are offering, along with our ATS solutions, covers our targeted customers’ needs and allows us to service them well.
EB: What is your global business strategy? In which countries do you sell your machines the most?
American Tec has been in the electronics business for more than 28 years with its coverage of Asia supported by more than 25 sales and support sites. Besides serving the fast growing China market, we have also positioned ourselves in upcoming markets such as Vietnam and India. Our primary goal for the next few years is to position American Tec as the leader and preferred partner for electronics manufacturers in Asia. With success attained in this sphere and the maturing of our ATS offering, going global would certainly be our long term goal.
Electronics Bazaar, South Asia’s No.1 Electronics B2B magazine
