Device Concept to Production with a Contract Manufacturer

There is no shortage of good ideas. What is rare, and valuable, is the execution of a good idea. This is most important in the context of mirco-optoelectronic device product conception. Once the idea is concieved, execution becomes the value driver. Execution entails overcoming significant hurdles before the product can be a working reality and ready for production:

  1. Designs must be drawn
  2. Prototypes need to be built and tested
  3. A working production process needs to be qualified

The cost of idea to production of the next new HB LED or MEMS device can be significant. But if successful, the payoff can be huge. One only needs to look at companies like Qualcomm to see that a large successful company can be built on the sucess of one piece of technology (CDMA in Qualcomm's case).

An idea for a great new product can come from many places. It may come from years of dedicated research and development, from intensive market studies, from student engineering projects, or from an informal gathering with details scribbled on a cocktail napkin.

Taking the product idea from the cocktail napkin to the marketplace requires expertise in areas such as materials, packaging, test and automation. This can be done several ways; options include:

  1. Outsourcing the process to a contract assembly manufacturer
  2. Hiring the expertise AND purchasing the test and assembly equipment (wire bonders, die bonders, pull/die/shear testers, etc.)
  3. Some combination of the two

Outsourcing Assembly -  Benefits

It is becoming less the case, but some companies still are reluctant to outsource their development out of concerns over cost, loss of control over the process, or release of proprietary information. Theres no bones about it - if you are going to outsource, you must choose the right partner. palomar contract assembly labThe right contract assembly partner will listen to your concerns and work with you, they will ensure the appropriate NDA (non-disclosure agreement) is in place, and they will be transparent about the capabilities and limitations.

Some of the benefits of Outsourcing Precision Micro-Optoelectronics Assembly are:

  1. Large, upfront capital equipment purchases/investments are pushed out or avoided
  2. You and your company gain immediate access to process expertise and increased capacity (watch your idea come to life quickly)

All the while, your contract manufacturing partner is focusing on your products materials, packaging test and automation issues.

Tips on Making the Decision

  • If possible, when choosing your contract manufacturing partner, get out and visit the factory and lab.
  • Take a tour around the facilities, talk to the engineers on the floor and in the lab, have lunch with the boss.
  • Ask what other applications and customers they are working with. What are their specialities? 
  • What volumes do they typically do? What are their common applications? Is there anything similar to what you have?
  • How flexible are they if there is a change in your program or application? Or a change in your ownership or management?
  • Is thier payment/fee structure reasonable?
  • Get a clear idea of their portfolio of machines: die bonders, wire bonders, test equipment, etc.
  • Do they take into account future applications and needs of their customers?
  • If your company decides they want to buy the equipment and set up the same automation process in your lab, will the contract manufacturer be able to make that transition successfully (and reasonably...no blackmail)?
  • Can they provide examples where they have done such a thing? 
  • What sort of stability does this contract manufacturer have? Are they on solid financial footing? (you don't want your partner to go out of business mid-production!)

If you choose to outsource your advanced packaging needs, it wil be incumbant upon you to do your homework and go with a company who backs up their claims.