Specialist
VP at SMC Automation China Co Ltd
Agenda
- Airtac’s (TPE: 1590) competitive strengths and weaknesses in the pneumatic component segment, plus market share comparison between 3C fixture and testing scenarios
- Reasons behind China’s lack of leading domestic pneumatic component players – Inovance (SHE: 300124), E.MC and Easun case study
- Airtac’s challenges associated with transitioning into more high-end client segments, Japanese players’ experience accumulation and technology barriers in the semiconductor sector, plus Festo’s failure analysis in the semiconductor sector
- Airtac vs competitors – product differences and performance barriers
- Competitors’ take on Airtac’s entry into the linear guideway segment and clients’ willingness to switch, plus 2022 linear guideway revenue outlook
Questions
1.
Is Airtac’s position competitively stable in the pneumatic component segment? Are there any Chinese brands that have the potential to catch up with Airtac?
2.
You just said that domestic companies’ sales weren’t as large as Airtac’s. Is it because they may not be able to catch up with Airtac in terms of technologies or they develop later?
3.
You said that Inovance also wants to dabble in the pneumatic component segment. It may mainly sell pneumatic components to its existing power line communication (PLC) clients at the very start. What is your view on Inovance’s entry into the pneumatic component segment?
4.
Inovance may not be able to win high-end pneumatic component clients in the beginning and may first mainly target clients from the electronics sector and sectors related to people’s livelihood. Is the willingness of clients from these sectors to evaluate new pneumatic component suppliers high?
5.
Does the speed you mentioned refer to the delivery cycle of pneumatic components or something else?
6.
How often does Airtac replace or repair its products for operating speed or quality insurance? Will other high-end brands take such actions at longer intervals?
7.
You mentioned that it is important for clients to have pneumatic components of different sources. Will they adopt the strategy of purchasing pneumatic components from multiple suppliers including Airtac, Inovance and Japanese brands or is this a rare practice in the industry?
8.
Is the 50% price gap between the products of Airtac and other high-end brands an average or maximum level?
9.
From the perspective of competition, Airtac has grabbed market share rapidly over the past few years. In this case, are more high-end Japanese or European brands still competing with Airtac in terms of price reductions or is there no such strategy in terms of price?
10.
Airtac reports its revenue every month. It claims that it has received a lot of orders for cells and packs in the battery industry, especially from many Chinese battery suppliers that have obtained orders from the European auto manufacturers. What do you think of the sustaining growth momentum of orders that the battery industry brings to Airtac and the pneumatic components segment in 2023?
11.
You said that Inovance hasn’t started mass production of pneumatic components. Are there any major industries that Inovance focuses on? What industries are they mainly sell pneumatic components in?
12.
In addition to the battery industry, the semiconductor equipment industry is another major growth driver. What do you think of the scale of pneumatic components in the semiconductor equipment industry?
13.
After Airtac entered the linear guideway segment, its production capacity is fostered. However, the sales are postponed for several times according to Airtac’s announcements. What do you think of the reason? Is it because of the pandemic or due to the factors of clients?
14.
What is the performance of Festo among the major manufacturers of pneumatic components used in semiconductor equipment industry like?
15.
If Airtac wants to supply semiconductor equipment companies, it needs to cooperate with the clients in product development. What is the main threshold? Is it because semiconductor equipment manufacturers are not willing to cooperate with Airtac to develop products, or are there other reasons?
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