SIIX Corporation President Koji Yanase announced the company will enter the outsourced assembly and testing (OSAT) business. This move forms part of expansion efforts to expand the company’s mainstay electronic manufacturing services (EMS) business.

Yanase confirmed this in a briefing with analysts, institutional investors, and reporters on the company’s sales performance ending Dec. 2021. He said, “We will forge an alliance with partner companies and start OSAT business to assemble semiconductors in FY2022.”

Partnership with SAKATA INX

Specifically, he mentioned SIIX’s partnership with Japanese ink maker SAKATA INX Corporation. Yanase said, “We will collaborate with SAKATA INX to cultivate lightweight electric vehicles (EVs), internet of things (IoT), and wearable devices markets in the new area of chemitronics.”

In this new area, the companies will merge electronics and chemical of printed electronics for printing. They will implement electronics devices at SIIX using SAKATA INX’s ink technology.

The company will also expand the battery pack business for industrial equipment, like chain saws and e-mobility, last mile delivery vehicles, and medical equipment.

Meet Demand in Automotive Electronics

SIIK will also actively meet strong demand for automotive electronics. Yanase said, “I expect that transactions with EV makers will get into full swing in FY2022. We also started direct transactions with finished car manufacturers, and directly deliver electronic circuit boards mounted with components to finished car manufacturers.”

Expansion of Production Lines

Yanase also said the company is committed to expand its production lines. “We will increase the number of surface mount technology (SMT) lines from 166 lines at present in 12 global production bases to 181 lines in FY2022.”

SIIK plans to raise 143.2 billion yen (US$1.25 billion) in sales from automotive electronics. This represents 59.7 percent of target consolidated sales of 240 billion yen (US$2.09 billion) for FY2022.

The company has also built a new factory building on the premises of its Thai plant to meet the demand for automotive electronics in 2023 and onward. It has also decided to buy a lot for a new factory building near its present plant in Mexico.