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116 SMT Magazine • September 2016 opportunities we can tap, and we're very excit- ed about the changes in the country. Las Marias: What are the challenges for EMS com- panies catering to the military and aerospace in- dustry? Dr. Sabido: The specs of some items, the toler- ances, are much tighter today. The reliability in the field, and of course, the environmental re- quirements. They require different types of pack- aging; they require really massive testing; and the specs are much more stringent. Labor-wise, cost-wise, I think they are very high, and then for you to really be engaged in the industry real- ly requires a lot of experience. You have to work very closely with your clients. It has to be tight- ly controlled also. Overall, it is challenging in all aspects. And military-grade products are expen- sive because they really undergo testing to death, and really have to withstand the harsh environ- mental conditions. Because of the very stringent requirements, it requires a different breed of EMS companies to be able to serve the market. It's a very difficult market to actually serve, but the profits and margins are really good. Not all EMS providers can go into that and the challenges are known: it requires a lot of technical capabilities, and it's not just a busi- ness-as-usual EMS line—it requires a very strin- gent line, a very controlled line, and of course, for some military applications, you really have to make it a self-contained operation because of the sensitive nature of the products, for exam- ple. It requires a certain know-how, it requires a certain skill, and traceability is very important. So it is a different breed of EMS companies and the skills that you really need. But it could also be very rewarding if you succeed. Las Marias: Because of the critical nature of the mil/aero industry, counterfeit components are a big issue. How do you address that challenge and how do you ensure the integrity of your component supply chain? Dr. Sabido: One of the things that would make or break an EMS company is supply chain man- agement. Even the top 10 EMS companies worldwide would actually say one of the secrets to their growth and success is actually manag- ing their supply chain. And really, tracing your components is actually very important. There are a lot of technologies you can use in terms of traceability and making sure they are not coun- terfeits. Our supply chain group ensures that they have that capability to actually trace the components back to their origin. That's one of our competitive advantages. That's why I keep talking about technologies such as RFID, bar- coding, and really coordinating with our sup- pliers, and the use of IT also for monitoring the logistics flow of our supply. I think it's very im- portant. Las Marias: With respect to the mil/aero market, what tips can you give customers when it comes to selecting their EMS provider? Dr. Sabido: I think number one is trust. You re- ally have to find an EMS company that you can trust. Because it is really more of a partner than a client, so the relationship is very important. My message to OEM companies is that you re- ally have to be open to the EMS company that you are going to talk to, because of the possible sensitive nature of the application of your prod- ucts. But then you also have to pick the right partner. You have to be able to trust that organi- zation. I think that's the most important thing. The rest are the specs; you have to be able to comply with this and that. But I think trust, ex- perience and know-how are very important. Las Marias: What market drivers or trends will ef- fect changes in the PCBA process? Dr. Sabido: Newer material technologies are very important. Solder, and other materials, how to make them more reliable, even the ma- terials for the board, the materials for the flex components, the wafers, and the chips. Even the issue with multiple substrates, which is a challenge in the semiconductor industry. But really the core is OT/IT, and then materials. Las Marias: Thank you very much for your time. Dr. Sabido: Thank you. SMT IONICS TALKS INDUSTRY 4.0, MIL/AERO OPPORTUNITIES, AND SUPPLY CHAIN