Electronics Manufacturing Services: Definition and Industry Overview

The production of electronic devices is a highly complex process, requiring many different activities with the use of specialized tools and personnel who can operate them. Rapid development and changes in the electronics industry have resulted in a new service appearing on the market: Custom electronics assembly. It is a response to the rapidly changing needs of electronic equipment manufacturers. It is also an opportunity to reduce production costs significantly. In this article, we are going to show you everything you need to know about this service.

The final effect in designing, manufacturing, and selling a single electronic device consists of many more minor activities and services provided by various entities, connected by a network of mutual dependencies and contracts. Currently, the success of many products placed on the market depends on the professionalism and reliability of the supplier, i.e., the EMS company. But, what exactly are Electronics Manufacturing Services all about? Let’s start with the straightforward definition of this service:

Electronics Manufacturing Services – definition

EMS (Electronic Manufacturing Service) is a broad term that generally describes all activities related to the contract manufacturing of electronics at the request of other entities (e.g., OEM). These services do not have to be limited to the production process itself. They can also include after-sales support, service and repair, organization of the logistics process, and design consultancy. EMS companies can be huge entities, with a turnover equal to the most prominent well-known brands in the electronics industry. A characteristic feature of EMS service providers is the lack of intellectual property rights to the manufactured products.

Electronic Manufacturing Services Industry Overview

The advancement of technology and the miniaturization of electronic devices mean virtually all industries benefit from contract manufacturing. Today, electronic components are found in virtually all electronic devices and even in toys. However, we can identify three primary industries that have been using EMS services for many years:

• The construction industry, which uses electronics both at the stage of erecting and equipping buildings
• The automotive industry, which at first glance looks more mechanical than electronic. However, when we look closely, we will see that cars and motorbikes today are essentially electronics
• The medical industry practically does not exist today without electronic equipment. At the same time, in the case of the medical industry, this equipment must be 100% reliable. That is why the assembly of components is outsourced to external companies, which offer the assembly itself and complete quality control.

Ultimately, the EMS service provides its client with high-quality products made by applicable standards and produces according to the ordering party’s guidelines. As a result, the ordering party avoids many problems, especially of a technical nature, and can deal with the central part of the business, i.e., activities related to the sale of finished products.

EMS providers use various technologies in the production of electronics. These enterprises have adequate machinery and employ professional technicians and engineers experienced in product management, production processes, and testing. By comparing expenses and profits and looking for savings that will allow OEMs to compete in the market with quality and price, choosing an electronics production service becomes the best choice.