Supply chain
A Changing Landscape - Chilisin on the Rise
Press release
Tuesday 19 March 2013

Global discrete inductor market demand contracted by nearly 30% from 2008 to 2012. In contrast to this downward trend, Chilisin Electronics Corporation, a professional inductor manufacturer based in Taiwan, achieved an outstanding growth of 80% within the same time frame. Within seven years since its establishment of overseas offices in the US and Korea, Chilisin quickly grew from a domestic player to a world-class company with a 7th place ranking in global discrete inductor market share by shipment value. Excluding Japanese players who have a longstanding history in the industry, Chilisin is currently ranked as the largest inductor manufacturer in the world. Chilisin's ability to grow rapidly in this tough environment stems from many key advantages that set it apart from its competitors.

For a long time, Chilisin has established strong working relationships with many of the largest contract manufacturers in the world based in China and Taiwan. Following a trend towards the separation of design and manufacture in the consumer electronics production process, Chilisin's presence and well-known brand in the Greater China and Asia manufacturing environment gives it a competitive edge over its Japanese counterparts. With Asian OEM and EMS customers increasingly favoring emerging inductor vendors in the Greater China region, Chilisin has been able to outperform its peers in the global market.

Chilisin is one of the few inductor manufacturers in the world specializing in all four types of manufacturing technology (multi-layering, wire-winding, molding, and thin-film processing) in addition to having the upstream powder formulation technology. Vertical integration coupled with an integrated production technology platform gives Chilisin both a cost competitive advantage and flexibility to adapt to market changes. As consumer electronics product lifecycle continue to shorten, Chilisin has been able to quickly respond in the design-in stage through support from its wide technology platform. Sales for use in smartphone in particular now account for more than one-fifth of the company's overall revenue as Chilisin continues to deepen its market penetration into the hand-held device sector.

Following a rough period for the entire passive components industry, inductor demand is estimated to grow by up to 50% in the coming five years. In an environment toughened by existing players and new entrants, continued growth must be achieved through creation of greater volume and higher value. Though it holds much of the world's production facilities, China is no longer a production location but becoming a fast growing market for fast-growing Chinese enterprises. The US, among other parts of the world such as Israel, will still be a leading destination for design-in activities providing higher value chain. Chilisin's favorable position among Asian contract manufacturers coupled with its penetration into the design-in stages of manufacturing in the US will be key in supporting the Company as it seeks to become a top 3 global inductor supplier.

Source: Paumanok Publications, Inc

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