SMT Assembly Will Not Disappear Anywhere

How New Technologies are Transforming Printed Circuit Component Assembly Production

A comprehensive interview was conducted with Peter Ding, the Director of I.C.T Technology, focusing on the current issues, modern challenges, innovations in the field of SMT assembly and installation production, and the global market dynamics.

SMT Assembly and installation production stand as one of the most conservative stages in the manufacturing process of printed circuit components. SMT Assembly experts approach new technologies with caution, emphasizing that any innovation should be determined by expediency and necessity. However, as the industry progresses, the production culture evolves along with it. Peter Ding, the Director of Technology at I.C.T, discussed what constitutes “right” innovation, anticipated changes in the traditional printed circuit component installation field, and when the craftsman’s hands are more crucial than automation.

Peter, you’ve been in this industry for over a decade. How has the industry and business you’ve been in changed during this time?

I’ve been in the SMT industry for over 20 years now, starting as a production supervisor in Chinese cellphone manufacturing plants to becoming a production manager. It was around the year 2000 when I stepped into the realm of electronic assembly. Surface Mount Technology (SMT) was an innovative technology in China at that time. I can tell you, in the early 2000s, very few companies could pull it off.

Even now, there aren’t enough experts – the education on surface mounting and other electronic assembly automation methods is still insufficient. I’m mostly self-taught in this regard, but my background in physics and exposure to foreign experiences greatly aided me.

What are the main challenges you and your colleagues are facing now?

The primary challenge is continuously introducing new technologies. How do we shrink the size of TVs and computers without compromising functionality? It necessitates installing them differently. Surface mounting brought about the timely arrival of laptops. Of course, simultaneously, microcircuits themselves underwent modifications. They started being made with housings in the form of output matrices, which wasn’t the case before. Without surface mounting, without the once innovative but now standard technology, smartphones or tablets wouldn’t exist in the form we’re accustomed to.

Can it be fairly said that one of the advantages of surface mounting technology is its simplicity?

This technology does indeed appear straightforward. Just three basic operations: applying solder paste, placing components, and heating. It can even be done manually, although the initial idea was quite the opposite – to automate with robots. The focus was precisely on industrial robotization.

As a result, has China’s progress in automation accelerated?

The issue is, in practice, everything isn’t as simple as it is in theory. Robots are very literal unlike humans. Whether a tantalum capacitor is orange or black makes a difference. But that’s the job of production engineering personnel – translating operations into robot language. If the process is organized correctly, robots will assemble circuit boards for the same laptop more efficiently than a person using a soldering iron. Yet, there are still companies resisting robotization.

I had a fascinating conversation with a colleague responsible for complex, critical equipment production at another manufacturing plant. Their company was reluctant to invest in robots, fearing difficulties in installation and setup, yet failing to recognize that this reluctance was leading their business into a technological dead end. After all, abandoning automation today would result in serious lagging behind a decade from now.

Do manufacturers still not understand this?

In my view, it’s not quite the case. Everything is related to market scale. Small markets encourage manual production. Factories are only built when the process is no longer manageable. However, there’s another obstacle: we don’t have enough long-term contract plans.

Of course, my statement is somewhat generalized. In fact, even within the same industry, situations vary. Some companies are building management systems to prepare for Industry 4.0, while others are not yet ready.

The former plays a very important role – they provide jobs for highly skilled development engineers and IT specialists, those who can become the foundation of industrial potential, which is the basis for the economic miracles of Europe and America.

Recently, large companies have started paying more attention to talent planning. Funds are allocated for expert training. How significant is this trend?

I’m glad such programs exist. But it’s the foundation for the coming decades. Unfortunately, this strategy doesn’t eliminate the current shortage of personnel.

Your current position is Director of Technology. What exactly do you do?

I’m like an “engineering midwife” – I assist in the birth of production. I have experience in both production and development. People come to me with requests like, “We need to produce this and that quantity of this and that product.” The main task is to assess the feasibility of establishing their own production line given the input data provided. If it can be avoided, I’ll say so directly.

Which companies do you recommend to organize their own production? Those with increasing production volumes?

Not necessarily. These could be small companies where time to market is crucial or organizations related to consumer or industrial electronic products requiring rapid prototyping. When customers encounter difficulties on this road, they come up with the idea of setting up their own SMT assembly line. Or they come saying, “We need a lab to successfully assemble prototypes under conditions close to actual production.” This is their two-birds-with-one-stone approach: they quickly produce prototypes and enhance their capability to assemble products in preparation for batch production.

What difficulties do companies face when investing in their own production?

The main risks are space and personnel. Typically, the project gets canceled during the search and preparation of the site stage because the outcome is either much longer in time than calculated or much higher in cost. If this stage passes, then the next major challenge is recruiting qualified talent. There’s always a shortage of capable people.

How long does it typically take to implement a typical equipment production project?

Let me give you an example from my own practice. In 2018, a set-top box company from Ecuador approached I.C.T. At that time, the market in Ecuador was booming, but even so, there was stiff export competition from China.

To compete for larger sales, the company decided to establish its own factory. It was necessary to design a production facility capable of assembling 2.8 million digital set-top boxes annually. To make the project successful, domestic assembly costs had to be lower than in China.

: SMT Assembly Line in Ecuador

: SMT Assembly Machine in Malaysia

Calculations included determining how many machines were needed, which SMT machines, how they should be placed on the SMT assembly line to ensure the required production cycle, estimating the number of defects for such quantities, etc. The management was satisfied with the technical development of the project and immediately signed the contract. Despite such efficiency, they didn’t start until the end of 2019, or even later to achieve the designed capacity. It turned out that simply connecting all the machines and placing everyone in their positions at the start wasn’t enough. A lot of time, including my work, was occupied by the development phase of mass production, when business processes were established, personnel were trained, and all supply chains were finally established. But in this case, we must pay tribute, everything came to an end: thanks to its production, the company successfully lowered prices and conquered the Ecuadorian market. And the line I calculated for them at that time is still effective.

The second good thing is that the company was able to successfully produce millions of set-top boxes annually. Remembering such cases is always heartening.

To calculate everything correctly, you may need to be a very powerful analyst. Nowadays, do new technologies and new projects make