SigmaTron is a Delaware corporation, which was organized on November 16, 1993,
and commenced operations when it became the successor to all of the assets and
liabilities of SigmaTron L.P., an Illinois limited partnership, through a reorganization
on February 8, 1994.
The Company operates in one business segment as an independent provider of
electronic manufacturing services (“EMS”), which includes printed
circuit board assemblies and completely assembled (box-build) electronic products.
In connection with the production of assembled products, the Company also provides
services to its customers, including (1) automatic and manual assembly and testing
of products; (2) material sourcing and procurement; (3) manufacturing and test
engineering support; (4) design services; (5) warehousing and distribution services;
and (6) assistance in obtaining product approval from governmental and other
regulatory bodies. The Company provides these manufacturing services through
an international network of facilities located in the United States, Mexico,
China, Vietnam and Taiwan.
The Company provides a broad range of electronic and electromechanical manufacturing
related outsourcing solutions for its customers. These solutions incorporate
the Company’s knowledge and expertise in the EMS industry to provide its
customers with an international network of manufacturing facilities, advanced
manufacturing technologies, complete supply chain management, responsive and
flexible customer service, as well as product design, test and engineering support.
The Company’s EMS solutions are available from inception of product concept
through the ultimate delivery of a finished product. Such technologies and services
include the following:
Manufacturing and Testing Services: The Company’s core business is the
assembly and testing of all types of electronic printed circuit board assemblies
(“PCBA”) and often incorporating these PCBAs into electronic modules
used in all types of devices and products that depend on electronics for their
operation. This assembly work utilizes state of the art manufacturing and test
equipment to deliver highly reliable products to the Company’s customers.
The Company supports new product introduction (“NPI”), low volume
/ high mix as well as high volume/ low mix assembly work at all levels of complexity.
Assembly services include pin-through-hole (“PTH”) components, surface
mount (“SMT”) components, including ball grid array (“BGA”),
part-on-part components, conformal coating, parylene coating and others. Test
services include and are not limited to, in-circuit, automated optical inspection
(“AOI”), functional, burn-in, hi-pot and boundary scan. From simple
component assembly through the most complicated industry testing, the Company
offers most of the services required to build electronic devices commercially
available in the market today.
Design Services: To compliment the manufacturing services it offers its customers,
the Company also offers DFM, design for manufacturing and DFT, design for test
review services to help customers ensure that the products they have designed
are optimized for production and testing. The Company also offers complete product
design services.
Supply Chain Management: The Company provides complete supply chain management
for the procurement of components needed to build customers’ products.
This includes the procurement and management of all types of electronic components
and related mechanical parts such as plastics and metals. The Company’s
resources supporting this activity are provided both on a plant specific basis
as well as globally through its IPO in Taipei, Taiwan. Each of its sites is
linked together using the same Enterprise Resource Planning (“ERP”)
system and custom IScore software tools with real-time on-line visibility for
customer access. The Company procures material from major manufacturers and
distributors of electronic parts all over the world.
The Company relies on numerous third-party suppliers for components used in
the Company’s production process. Certain of these components are available
only from single-sources or a limited number of suppliers. In addition, a customer’s
specifications may require the Company to obtain components from a single-source
or a small number of suppliers. In the past twelve months the component marketplace
has experienced shortages of various components, which in some cases has delayed
delivery of product to customers. The loss of any such suppliers could have
a material impact on the Company’s results of operations. Further, the
Company could operate at a cost disadvantage compared to competitors who have
greater direct buying power from suppliers. The Company does not enter into
long-term purchase agreements with major or single-source suppliers. The Company
believes that short-term purchase orders with its suppliers provides flexibility,
given that the Company’s orders are based on the changing needs of its
customers.
Warehousing and Distribution: The Company provides both in-house and third
party warehousing, shipping, and customs brokerage for border crossings as part
of its service offering. This includes international shipping, drop shipments
to the end customer, as well as, support of inventory optimization activities
such as kanban and consignment.
Green, Sustainability, and Social Responsible Initiatives: The Company supports
initiatives that promote sustainability, green environment and social responsibility.
The Company requires its supply chain to meet all government imposed requirements
in these areas and helps its customers in achieving effective compliance. Those
include, but are not limited to, Restrictions of Hazardous Substances (“RoHS”),
Restriction of Chemicals (“REACH”) and Conflict Minerals regulations.
Manufacturing Location and Certifications: The Company’s manufacturing
and warehousing locations are strategically located to support our customers
with locations in Elk Grove Village, Illinois U.S.; Union City, California U.S.;
Acuna, Chihuahua and Tijuana, Mexico; Suzhou, China and Ho Chi Minh City, Vietnam.
The Company’s ability to transition manufacturing to lower cost regions
without jeopardizing flexibility and service, differentiates it from many competitors.
Manufacturing certifications and registrations are location specific, and include
ISO 9001:2008, ISO 9001:2015, ISO 14001:2004, ISO 14001:2015, ISOTS 16949, Medical
ISO 13485:2003, Aerospace AS9100D and International Traffic in Arms Regulations
(“ITAR”) certifications.
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