Established on December 15th, 1995, Shanghai KYOCERA Electronics Co., Ltd. (SKE) is co-funded by Shanghai Electronic Component Holding (group) Company and Japan KYOCERA joint-stock company, producing new types of electronic components. In its newly established time, with registered capital of 2 billion yen, it didn’t have a large scale. In order to introduce advanced tecgnology and equipment, it added its investment for six times, raising the registered capital to 14.7 billion yen with total investment of 40.9 billion yen. The company can thus increase the number of equipments and expand its productivity. In its early stage, SKE met quite a few problems, such as that of production and sale. But with the investor’s utmost support, it enjoyed a 30% growth of income each year after it had made a progressive product readjustment, importing predominant products and expanding its domestic and foreign market share. In 2003, the sales income was 1.3 billion RMB with a value of export of 110 million USD. Meanwhile, it began to develop quickly after it has formed a backbone team of business and technological administration and had accumulated strength for a take-off.
Effects were seen after the complement on the strategy of “Laying the foundation by general products, strengthening potential power by predominant products and increasing profit by advantageous products” as prescribed.
I.The foundation of SKE: MLCC
Multi-layer ceramic capacitor (MLCC) is a gerneral electronic component, which emerged with the tide of the miniaturization and high reliability of military equipments in WWII. After the 1970’s when high-speed flip chip machine came out, MLCC was saled throughout the world. When it came into the 1980’s, the electronic industry of China grew rapidly, which attracted many big MLCC manufacturers of the world swarm to Mainland China and establish plants. Under such circumtances, in December 1995, Shanghai Electronic Component Holding (group) Company and Japan KYOCERA joint-stock company co-funded into Shanghai KYOCERA Electronics Co., Ltd., with a main production line of MLCC from raw materials to finished products, which was a new development start of SKE.
In 1996, SKE broke the traditional post-project production line and develped a whole set of palladium electrode MLCC HAPS (High Accurate Printed Stacking) fabrication technologies, putting all production links into one line from the introduction of electric capacitor ceramic powder to the shipment of finished products. Later on, by lowering the cost and strengthening the market compatativeness, it replaced palladium electrode by nickle electrode and realized the industrialization of MLCC with technology of the lowest cost, which may spend some big manufacturers over a decade to fullfil. This technology applys abiochemical, organic chemical, mechanical, electrical, thermological and electric knowledge, breaking through many problems of capacitor-making, such as ceramic material, electrode material, atmospheric combustion and electroplating. In order to further lower the cost, the capacitor division set up a betterment group of technology, manufacturing and QA personnel. It altered the basic ceramics material three times, and realized a nickle eletrode production of all sorts of 0603, 0805 Specification, Y5V, X7R high dielectric constant MLCC.
In 2000, SKE introduced the 0402, 0603 Specification temperature compensated MLCC manufacturing technology, multi-layer capacitor manufacturing technology and the CMAP (Chip Manufactural Automated Process) fabrication technology for medium and big-sized capacitors, such as 0402（1.00×0.50）, 0603（1.60×0.80）, 0805(2.00×1.25) and 1206(3.20×1.60), in order to expand its product variety and meet the clients’ demand with the key word of miniaturization, high Q value and high capacitance of MLCC. The capacitor’s layer number increased from less than 80 to 300, while the capacity grew from 0.22μF to 22μF, with an output of over 300 million per month.
MLCC, the general product, has established a solid foundation for SKE.
I.Semi conductor packages strengthen the potential power of SKE
The semi conductor packaging division is the largest devision of SKE. Its product is semi conductor components (SMD) packages, which is mainly applied in various electric appliances such as telecommunication, automobile, computer, digital camera and DVD. This product has a world market share of more than 70%, which is a predominent product of the group.
This sort of product is now being produced in Kawauti Plant (Kagoshima Japan) and SKE whose productive rate has reached 60%.
KYOCERA group closed several Japanese corporative plants in order to transfer its predominent product from Japan to Shanghai and thus make Shanghai its main manufacturing base. As the manager in chief gives an immediate concern on the devision, it is strongly supported by the company leaders in terms of productive location, human resources, logistics, capital and material, education, etc. The sales volumne of August 2003 broke 100 million for the first time, and one year later the figure turned to 200 million. The monthly output, sales volumne and pretax profit of SMD devision, which is one of the most influential devisions now, all rank highest in SKE.
Established in July 2001, the chip division produces TCXO, VCO, FEM, which are three series mobilephone components. They are knockout products of the KYOCERA group. TCXO, Temperature Compensated Crystal Oscillators, has an international market share of 60%, whose cyristal components are self-made.
During its production and business process based on the people, it was an important precondition of success to have communication and exchange between the Chinese and Japanese parties, to have unity and coorporation among the staff, to have a dashing spirit facing difficulties and to have an aggressive working invironment. What the chip division has gained from its emphasis on high quality production and management is not only the high profit, but also the trust from SKE’s clients and the credit. Each time before production increase plans are carried out or new products are put into production, the chip division always gives its staff an special education to make them more conscious of the quality and let them know that the quality of a product is not the life of the product itself but the life of the company. And the life of the company is the fundament for it to stand out in the competitive market. Due to the staff education for three years from its establishement, the clients have recognized the chip division on its delivery time and quality. The management of construction period and the skill training for operators have raised the productivity, ensured the time of delivery and greatly shortened the production cycle during the efficient production and managing work. At present, the production cycle is five to six days and is aimed at four days. This is one of the basic and essential management measures to make both quality and quantity profits.
This year, the product variety has raised from the beginning three series, three breeds to three seires, 19 breeds, and the number of domestic clients is nine rather than one before. Both the slaes amount and profit have increased a lot.
I. Struggling to be the best in Chinese electronic component industry
SKE is the biggest overseas manufacturing base of the KYOCERA Group. It has already set the goal of becoming the first in Chinese electronic component industry early in its establishment, under the guidance of being a world first class company and inciting working enthusiasm and creativity of the staff. The rapid growth of the company made it climb fast in the TOP 100 list of Chinese electronic component industry. It ranked 24th in 2000 and 11th in 2003. The development of SKE cannot be seperated from the thought and support from the municipal government of Shanghai and the local government of Pudong New Area. With the ever-improving investment environment, SKE will expand successively in the treasure land of Pudong. In the confidence of ranking highest in Chinese electronic component industry, SKE will spare no effort and make more contributions to Chinese economic development.
