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Increased ODM in China, Pacific Rim boost SMT sales

Posted: 28 Nov 2002 ?? ?Print Version ?Bookmark and Share

Keywords:surface mount technology placement equipment?

The budding domestic electronics market in China and the growing original design manufacturer (ODM) market in the Pacific Rim have been opening up growth opportunities for surface mount technology (SMT) placement equipment manufacturers, said Frost & Sullivan.

According to the latest analysis by Frost, the world SMT placement equipment market generated revenues totaling to $1.81 billion in 2001, with total market revenues expected to further reach $3.09 billion in 2007. Frost added that while the growing ODM market in the Pacific Rim accounts for some of the biggest buyers of placement equipment in the region, the expanding electronics manufacturing service markets in North America and Europe are also bolstering the placement equipment revenues.

The market research firm explained that recent technological developments have greatly improved the throughput, accuracy, and flexibility of SMT placement equipment, gantry equipment in particular, thus increasing demand. Medium-speed modular machines are also gaining popularity because they are said to offer the versatility to handle an increasing range of part types and can be used with several units in line to create high-speed production lines.

The new smaller, lighter, and more powerful applications such as PDAs which combine computing and telecommunication functions are also contributing to the higher demand of SMT placement equipment. Increased demand for micro-sized packages by electronic assemblers and the higher densities on PCBs are as well expected to fuel demand.

Additionally, automotive and medical end-user industries are also opening new avenues in this market. This can be attributed to the increasing number of electronic devices, as well as the use of global positioning and telematics systems in vehicles and the rapid growth in the use and number of medical devices.

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