Issue link: https://iconnect007.uberflip.com/i/721932
112 SMT Magazine • September 2016 therefore execution and implementation be- come a challenge. They are not cheap, so it re- ally requires good business justification for it to be created, where it can really be impactful, in your line. It doesn't have to be end-to-end, but where it makes sense, applying the technolo- gy where it makes sense and where it can really justify the business. Those are the two greatest challenges. The third is really competition. For an EMS com- pany, how would you differentiate yourself from others is really a big thing, and usually it has always been about cost, proximity, and relationship. And it may have worked in the past—and of course it still continues to be a traditional business—but now, we cannot be complacent, and we have to be able to differ - entiate ourselves and continue to really grow our business. Las Marias: You've been in the industry for de- cades. What are some of the biggest changes you've seen? Dr. Sabido: A lot of my background has really been in design, in R&D. What really made Ionics attractive for me is, once again, Larry Qua's vi- sion—the end goal of which is a Philippine prod- uct that will be well-known globally. And I share the same vision as him. That's why it's really a great opportunity to be working with Ionics. In the industry for the past decade or so, we've looked at the different success stories of Taiwan, China, Korea, including Japan, and of course the U.S. and Europe, and Germany. The industry started off with the computing in- dustry. It's really computers that drove a lot of the industry's growth. And then PCBAs. Locally, when Intel came into the Philippines back in the early '70s, it really gave a boost to the local manufacturing indus - try. That's why a lot of local com- panies started out as SMS—semi- conductor manufacturing servic- es. And then they transitioned into EMS companies. There are a few more that are still in SMS, but most have transitioned to EMS. The first industry that was high volume included people open to out- sourcing their production. A lot of OEMs be- fore were manufacturing by themselves. What we've seen were EMS companies that have actu- ally grown and more OEM companies that have become willing to outsource. It started out in the computing industry where there was a big boom in computers. But then it branched out eventually to other sectors as well—from tele- com to consumer electronics, and now medi- cal and automotive. We've seen the challenges from the computing industry, to now the strict- er and stricter quality requirements of the med- ical and automotive industry. That's where we see the transition, wherein in terms of QMS, in terms of very high tolerances, very strict re- quirements, that's where we've seen the indus- try actually grow. We've seen a lot of people come and go in the industry; in fact, we've seen OEMs actual- ly give up certain market share—they are losing market share so they exited that product space. But I think what stands out—and the next nor- mal for the electronics industry—is really how IT can actually make our operations better. Maybe I am biased because of what I've seen in Industry 4.0, but that's where I've seen a sig- nificant change right now in the industry. The rest are business as usual, like consolidation. But more and more, it's the use of IT, starting with ERPs, putting computers on the line, and now really leveraging all that and having a complete operational picture for the whole factory. Las Marias: What trends do you see as you look out at the electronics manufacturing service industry? IONICS TALKS INDUSTRY 4.0, MIL/AERO OPPORTUNITIES, AND SUPPLY CHAIN