IMI eyes new EMS model to fuel growth

Laguna, Philippines-based Integrated Micro-Electronics Inc. (IMI), announced last month that it posted $11.3 million in net income for the first two consecutive quarters ending June 30, 2014. What's interesting is that this is more than five times the first-half 2013's profit of $2.1 million. The company's consolidated first-half revenue of $431 million is a 23-per cent growth over $350.5 million for the same period last year.

So what has IMI going for itself? "We maintain our profitable growth trajectory, driven by increased demand from customers in the telecommunications infrastructure, automotive electronics, and storage device markets. More important, we have a healthy sales pipeline, especially for the automotive segment," said Arthur Tan, IMI president and CEO, in an announcement.

Exploring new business models

While business for IMI may be picking up, the business of EMS has been under pressure from shrinking margins. Can IMI sustain this growth long term on the current business model?

In a press announcement July 31, Tan said the company continues to develop new business models and high value-add services. In an exclusive to EE Times Asia, he later added that they are evolving into a new type of EMS provider by bringing on board different elements, skill sets and capabilities. "It's going to be a model for EMS plus. For example, we already do design and product development, advanced manufacturing engineering, test and systems development, automation, failure analysis and reliability testing, and plastic encapsulation," he explained.

Among the elements that Tan talked about, the company lists two as their main success areas: Design & Development (D&D) and Test and Systems Development (TSD).

Tan said their D&D team now has competencies in electronic design, mechanical design and software development. They continue to maintain expertise in automotive cameras and imaging systems, LED lighting, human-machine interfaces, HVAC components and short-range wireless modules. "At the same time, we are actively engaged in the development of platforms for next generation products in the areas of motor drives, automotive cameras and power modules," Tan added. "As the electronic content of cars increases, we are capturing more D&D opportunities with Tier 1 automotive OEMs."