Interview with the President of JUKI Europe - Jürg Schüpbach
JUKI is one of the fastest growing company in the SMD industry with currently over 19'000 installed pick and place machines worldwide. Trevor Galbraith from Global SMT spoke to Jürg Schüpbach, president of JUKI Europe, about the secrets behind their success and the goal to become the world supplier number one of SMD machines.
Q1. Jürg, you have had a tremendous 2007. What do you think is behind the explosive growth you have experienced in Europe?You are right. 2007 was an absolute all time record year for JUKI Europe in regard to revenue, profit, amount of delivered modules and generation of new JUKI accounts. For the rapid growth during the last four years, several factors have counted. Most important is the great acceptance of JUKI machines in the market as well as to meet customer's expectations. Our systems are probably the most reliable in the industry. We got fantastic references from our highly satisfied customer base which have penetrated the market over the years. Another strong success factor is our Lowest Cost Of Ownership philosophy.
Q2. Having the "Lowest Cost Of Ownership" is obviously important, but what about flexibility. Most customers don't know what they will be building in 6 months time?
Our customer base in Europe produces an average lot size of 100 boards. JUKI has grown up in the high flex market environment. The JUKI modular concept is very well suited for this market. With one of the most advanced closed loop intelligent machine and feeder concept we can offer an affordable super high flex solution to our customers. The concept, which was developed in Europe and America, includes also intelligence on the Matrix tray changer and fully implemented traceability concepts down to the placement position.
Q3. The FX3 was shown in Europe for the first time at Productronica. At the high-volume end of the business, how will this compete with other machines?
JUKI became the number one supplier in China by delivered modules, without having a super high speed machine. With the FX3 we now open up a complete new market segment. The FX3 will become the most reliable and affordable high speed machine in the industry. This was already recognised by winning the global SMT award 2007 in the category "pick and place machine of the year". The theoretical or IPC speed is not that important anymore. The FX3 is rated according to IPC with 60'000cph. At the end, it only counts how many good boards are build. Key factors for the high speed machine are minimal maintenance time, fast changeover, no breakdowns and easy to use. Again this is the strength of all JUKI products - to have practically no machine or production down times.
Q4. Once the FX3 is fully introduced, how will it fit into the JUKI stable alongside the 2070 and 2080 machines?
JUKI has three levels of offerings. These are the KE modules for high to super high flex environment, the FX modules with the focus on high speed and CX/SX for advance technology. We have invested record money in the future development of all three product segments. You can also in 2008 expect new JUKI machines, software modules and supporting products. All modules are compatible under each other in relation to feeders and line software. So it is possible to integrate a FX, KE and CX/SX module in the same line without any problems.
The goal of this development concept is providing JUKI customers the opportunity to invest from entry level through super high speed machines and from high flex towards advances technology. It allows JUKI as a competent partner to offer a complete range of affordable and reliable SMT pick & place machines.
Q5. Customers are increasingly asking for higher volumes of die to be placed on boards. How does JUKI address these issues?
Our current IC placer KE2060R and KE2080 are able to place flip chip and die out of waffle, trays and surf tape. In Asia and America we offer the CX1 machine which goes further into dedicated semiconductor business. In 2009 we expect to launch the SX module series with focus on the semiconductor advance technology segment featuring fully clean room compatibility and SMD placement capability.
The SX will be a super high accurate (with a 10 micron accuracy) and high speed flip chip and die placement semiconductor machine (3000cph for flipchip including fluxing plus 12'000cph SMD). In the semiconductor business we have to be able to integrate high speed wafer feeders, flexible specific process technology etc. JUKI believes that the SMD and semiconductor business will move closer together in the years ahead. Also this product will open new market segments to JUKI.
Q6. You were fortunate to win a Global Technology Award at Productronica. What were the key features that contributed towards winning the award?
JUKI, with its new FX3 was chosen over the tough competition entries. The FX3 was honoured to be the first high speed machine with integrated high flex features which price wise, is also affordable for small to midsize companies in the west to prevent them losing their high speed products to the low cost countries in Asia and south America. JUKI was also recognised as the fastest growing company in our industry.
Q7. In Europe, which markets are growing rapidly and why?
JUKI Europe has grown an average of over 37% over the last four years. Studies show that the Europe business for pick & place is growing only app. 5.7% per year. For JUKI the fastest growing markets are Germany, Italy and especially the Eastern European countries. In Germany we have a very well established direct organisation working out of Nuremberg and many, many satisfied customers. The main reason for our performance in the market is, as previously discussed, the satisfied customers talking about their success with JUKI to non JUKI customers.
Q8. Any final predictions for JUKI in 2008 and beyond?
We expect that 2008 will be another fantastic year for JUKI world wide. With the delivery of the FX3 starting we will be able to target new accounts and new industries. The fast growth rate is expected to continue. In Europe we clearly have to outperform the market to achieve this growth.
We are already in the top market position world wide concerning delivered modules per year and the goal is to be the number one supplier of SMD machines by revenue world wide in 2010. The whole organisation is focussing on this goal. We will be a reliable long term partner for our customers in all aspects of the business.
Jürg, many thanks.
