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2009/09/29
Test Research Inc. Targets Brazil as Strategic Market
(The following is a translation of an article originally in Portugese and published in Brazil.)
Taipei, Taiwan (Sept. 21, 2009) – Test Research Inc. (TRI), of Taiwan, is betting on the growth of emerging markets and sees Brazil as one of the keys to this strategy. TRI designs, manufactures and exports a wide range of inspection and test systems used in the manufacture of electronic products. Products include Automated Optical Inspection (AOI), Automated X-Ray Inspection (AXI); and test systems for assembled boards and integrated circuits.
TRI solutions are found in more than 20 countries, including Brazil, where it maintains partnership with Tekno-sip, which acts as a representative and distributor, according to Jonathan Lin, TRI's VP for International Business Development. The strategy of his company is to focus on both third-party electronics manufacturing services (EMS) providers, and also own-brand manufacturers (original equipment manufacturer, or OEMs).
"In Brazil, our installed base has grown continuously in this last four years," affirms Lin, highlighting that the TRI equipment is used by EMS multinationals like Jabil, which has plants in Belo Horizonte (Mato Grosso) and Manaus (Amazonas). TRI systems are also used by Brazilian companies like Sisvôo, of Itajubá (Mato Groso). Multinational OEMs that have factories in Brazil and use TRI solutions include Siemens and LG. Domestic companies include Positive and Intelbras.
Lin explains that his company's products have gained acceptance due to an extensive portfólio with a cost/benefit ratio extremely favorable to the client. "We have 35% of the market-share in the inspection and test of assembled board segment in the Greater China market which is undoubtedly the most demanding in terms of cost/benefit ratio."
One of TRI's secrets to finding widespread acceptance in markets with characteristics as dissimilar as Greater China, Europe, Japan and Brazil is its philosophy of offering to the market inspection and test solutions that fit the client's budget and that suit their production process. This is possible thanks to a varied product portfolio and the willingness to make the necessary adaptations to the needs of each market. "We prove that nobody needs to invest a fortune in inspection and test capital equipment. It is possible to develop quality solutions at accessible prices," guarantees Lin.
To develop technologies that combine quality and price, TRI invests from 8 to 10% of its revenues in research and development. After the global economic crisis in the last quarter of 2008, the percentage of investment destined for R&D jumped to 14 to 17%. "In spite of the reduction in our turnover, we decided not to reduce the absolute amount spent on R&D to guarantee we offer top solutions," affirms the TRI VP. In 2008, the company turnover was about US$72 million.
Lin stated that TRI's R&D team numbers about 80 professionals, of whom about 50 were involved in projects developed by Taiwan's Industrial Technology Research Institute (ITRI), the most important government-run research institute in Taiwan.
In Brazil, just as in other markets, TRI's AOI line is finding great acceptance. The segment represents over 50% of the company's revenues. In this segment the company is the second biggest world-wide supplier.
In equipment for testing assembled boards, TRI is the third-largest worldwide supplier and it has the second biggest base installed in Brazil. According to Lin, this segment represents 40% of the company's revenues.
Semiconductor test equipment already represents 5% of TRI's global sales, but in Brazil the market is still limited because the volume of semiconductor production in Brazil is still very limited.
Tekno-sip is one of TRI's representatives in Brazil and they distribute TRI products nationally. Techno-sip is a company dedicated to representation, sales and support of foreign origin products. Tekno-sip was created just over one year ago, but has accumulated great experience in the electronic test solutions market. Techno-sip has a close relationship with ETS, which has been in the Brazilian market for almost two decades.
About TRI
TRI designs, manufactures and markets precision test equipment for the world's leading electronics manufacturing service ( EMS) companies. Product lines include Automated Optical Inspection (AOI) and Automated X-Ray Inspection (AXI), In-Circuit Testers, Board Testers, Solder-Paste Inspection, Manufacturing Defects Analyzers, and Integrated Circuit Testers. TRI also provides fixture and professional services.
Established in 1989, TRI is an ISO9000 certified company publicly listed on the Taiwan Stock Exchange. Contact the company at sales@tri.com.tw , or visit the website at www.tri.com.tw .
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