What’s the history of Cirtek Advanced Technologies and Solutions, including what motivated the formation of the company?
Cirtek Holdings Philippines Inc., the parent company of Cirtek ATS (Cirtek Advanced Technologies and Solutions), has been in the OSAT (outsource semiconductor assembly and test) business for 31 years. This company, Cirtek Electronics Corporation (CEC), has been very successful in the industry and profitable year in and year out since inception. Adding a systems manufacturing operation to the business produced a synergistic effect, providing a total manufacturing solution especially to telecommunications companies with microwave and millimeter wave products.
What led to the purchase by Cirtek Holdings Philippines Corporation? What have been the resulting benefits? Any downside?
The purchase of Cirtek ATS was driven by an overall company expansion plan. The resulting benefit is it allows the Cirtek group of companies to offer expanding solutions to its customers from semiconductor packaging to complex box-build systems. There has been no downside to the expansion of the business, and we project to double our revenues next year.
What manufacturing services do you offer?
We offer complex assembly and test solutions for RF, microwave, millimeter wave and antenna systems. This includes manufacturing and engineering services for components, subsystems and systems, including RF test and tune, box build, complex mechanical and PCB assembly and test development.
How are your manufacturing processes unique from other OSAT companies?
Our 19-year knowledge of RF microwave and millimeter wave products have given us the edge. There are very few companies in the world that have millimeter wave manufacturing capability and product expertise, including testing and test development. The average experience of our workforce is more than 10 years with the company. We have a low labor turnover rate, significantly less than 10 percent per year. Our labor rate is relatively low, about half of China’s. Furthermore, we are very serious in protecting our customers’ IP.
Are there other services you offer that differentiate you from your competitors (turn-key manufacturing or rapid prototyping, for example)?
Yes, we do turn-key manufacturing for products up to 80 GHz. During prototyping, we have the experience and expertise to provide technical, process and testing improvements. We are also known for having high reliability products and systems. We have a full manual and automated MIC (microwave integrated circuit) lab in Asia. We are capable of building low volume, high mix all the way up to high volume products.
Do you target specific markets or types of assemblies, such as RF power or millimeter wave?
Yes, we are targeting microwave and millimeter wave products, although because of our price competitiveness and quality, various customers such as those needing test boards and smart antennas have chosen us as their manufacturing arm.
We see tremendous consolidation in the semiconductor industry. How is this affecting your business?
Cirtek ATS is not directly affected by company consolidation in the semiconductor industry. For our sister company, CEC, about 65 percent of their products are custom made. It will take a long time for their customers to switch to another subcontractor. Furthermore, with a number of the companies who have consolidated, both parties are customers of CEC.
What are your plans and goals for Cirtek ATS?
We are expanding our business 2x in 2016 and at least 50 percent in 2017. We are presently involved with several companies who are introducing new leading-edge technologies for the RF industry.
If a company is seeking a contract manufacturing (CM) partner, what are the most important factors to consider?
I would say that trust is the number one factor. A CM must do what they say. We strive very much to attain this credibility. Second, ensure that the CM is a true partner and works more as an extension of your business and not as a separate company.