Site:

Chartered Electronics Industries (CEI) - Singapore
19 Tal Seng Drive, Singapore 535222

Participants:

S. K. Gan, Assistant General Manager
Peter Loh Kum Pui, Manager, Product Marketing
T. Y. Heng, Head, Manufacturing Engineering

Mission and strategy

• Chartered Electronics Industries is a member of Singapore Technologies, which is a large government-sponsored holding group with strategic business areas (SBA) ranging from ordnance to semiconductors.
• Chartered Electronics was established in 1980 with government-sponsored venture capital to provide electronic manufacturing value-added services. It is part of the electronics SBA. Its strategy is to move into total box production and to provide higher-value-added services.
• The products it manufactures include telecommunications (10%), industrial (36%), PC products (34%) and office equipment (20%). Its customer base includes Compaq, Allied Telesystems, Packard Bell, Oce, Planer, IPC, Creative, Aztech, Philips, Fuji, and Xerox.

Key Elements of Presentation

• Chartered Electronics' core business is divided into 5 areas: (1) contract manufacturing; (2) turnkey, semi-turnkey, and consignment electronics manufacturing; (3) complete product manufacturing; (4) PCBA assembly for other members of Singapore Technologies; and (5) thick film hybrid assembly.

• Charter Electronics has 3 locations:

  Location       Sq. Ft.   Employees   SMT     
  Singapore          50,000       438          5 
  Batam              33,000        20          2 
  China (Suzhou)                  182
  

• CEI provides complete product build for a portable language translator it is manufacturing. CEI representatives also quoted a cost redesign activity where they were able to redesign a product and move it to their Batam facility with lower labor rates and provide customers with a 20-30% cost reduction.
• CEI utilized its Batam facility to assembly PCBAs that have higher labor content.

Key Elements of Tour

CEI's manufacturing labor force is made up of Singaporeans, Malays, and Chinese. The turnover rate in Singapore is 10% per year but almost zero in Batam since the laborers in Batam sign a two-year contract.

Key Results

KME placement equipment is used in the SMT lines and CEI has a cycle time of 3 - 4 days.

Conclusions

CEI leverages GINTIC resources and government incentive programs to lower its cost of process development.