In this context, the global electronics industry continues its upward trajectory. According to Prismark’s March report, the global electronics market expanded by 6.9% over the past year, with a projected CAGR of 4.6% in the coming years.
This data was shared by Andreas Gerstenmayer, CEO of Otis Group, at the recent AT&S annual media exchange. According to the data, automotive, medical, communications, consumer electronics, industrial applications, and computers are all currently bullish sectors. Specifically, automotive, industrial applications, and communications are anticipated to show significant potential in the coming years.
As a key player in PCB and semiconductor packaging, Otex’s own development trajectory offers valuable insights into the broader trends shaping the electronics industry. Prismark’s data indicates that the PCB and semiconductor packaging market grew by 8.6% in the past year, with a projected CAGR of 5.3% in the near future.
Ge Simai presented growth figures specific to Otus. In the last fiscal year, Otus achieved an impressive revenue growth of 18.8% in the PCB and semiconductor packaging market, with expected annual growth rates exceeding 15% in the upcoming years. This highlights Otus’s growth trajectory surpassing the market average. While there may be variations between Prismark’s statistical data and real-world scenarios, these figures collectively underscore the robust growth within the electronics industry.
Take a closer look at Otus’s FY 20/21 financial report.
Otus held a teleconference on May 18 to discuss the FY 20/21 report, with the contents also covered in this media sharing meeting. Annual sales for Otus in fiscal year 20/21 reached 1.188 billion euros, marking a 19% increase from the previous fiscal year. Additionally, net profit surged by over 100%.
Otus had previously achieved its sales goal of surpassing 1 billion euros in FY 2018/2019, and is currently in a phase of steady improvement. Furthermore, Otus anticipates reaching its sales target of 2 billion euros a year ahead of schedule, aligning with the More Than AT&S strategy proposed by Otus in the past. This strategy aims to double revenue to 2 billion euros in the short to medium term (5 years).
This report card concerns Otus’ involvement in diverse application fields. Official materials from Otus indicate that “diversified customers and product applications promote rapid growth of the mobile device business.” Many enterprises we have contacted previously have also noted that those with broader business scopes exhibit greater resilience to market fluctuations.
Chen Jiang PHA (Pan Zhengqiang), CEO of OTEX Global Mobile Equipment and Semiconductor Packaging Carrier and Chairman of OTEX (China) Co., Ltd., emphasized, “Our customer diversification and portfolio of application scenarios played a crucial role, especially during the epidemic last year.”
Otus primarily manufactures high-end PCB boards and IC carrier boards (semiconductor packaging carrier boards), serving sectors including mobile devices, IC carrier boards, automotive, industrial, and medical fields. The company’s operations are divided into two main segments: the Mobile Equipment and Semiconductor Packaging Carrier Business Unit, and the Automotive, Industrial, and Medical Business Units.
The Mobile Device and Semiconductor Packaging Carrier Business focuses on producing PCB boards for mobile devices such as smartphones, tablets, laptops, desktop PCs, servers, digital cameras, and other consumer electronics. Otus’s main production facilities for this segment are located in Shanghai and Chongqing, China.
The Automotive, Industrial, and Medical Business Division targets customers in automotive, industrial applications, medical technology, aerospace, safety, and other sectors. Production and manufacturing for this division primarily occur in India, South Korea, and Austria.
In FY 20/21, revenue from the Mobile Device and Semiconductor Packaging Carrier Business increased by 29% to 882 million euros, marking its highest revenue in history, according to Otus. Ge Simai also noted that “semiconductor packaging carrier boards significantly drove business unit sales growth,” alongside increasing demand for PCB products used in modules.
Conversely, revenue from the Automotive, Industrial, and Medical Business Units experienced a slight decline and remained relatively flat. This segment was most severely impacted by the epidemic, particularly in the first half of last year (April to October 2020), primarily due to significant disruptions in auto sales.
In an interview, Gerstmer highlighted several challenges affecting the automotive industry, including chip shortages and disruptions caused by other industries. He predicted that the global chip supply for the automotive sector might not return to pre-epidemic levels until 2023, indicating a prolonged recovery period for the industry.
Looking ahead to FY 21/22, Otus forecasts a 13% to 15% growth in sales volume, with an optimistic outlook on profit margins despite ongoing large capital expenditures. For instance, the Chongqing factory expansion project, including the third phase expansion, is expected to cost 450 million euros.
The market environment continues to stimulate enterprises like Otus. In addition to revenue growth, Ge Simai highlighted Otus’s achievements, including consistent top rankings in the HDI PCB field globally and aspirations to rank third in ABF (ajinomoto build up film) PCBs through ongoing investments in the Chongqing No. 3 Factory.
Otus’s “More Than AT&S” strategy emphasizes modularization trends and additional business opportunities, including PCBs for module products and module integration services. This strategy aims to enhance Otus’s position in the value chain and capitalize on future market opportunities.
Regarding Otus’s operations in China, where 69% of its global workforce is based, the revenue composition does not significantly reflect China’s market share, as detailed in the annual report. Regional revenue breakdowns and global asset distributions further underscore Otus’s position in the global electronics industry market.
