Don Monn

DON MONN:  Hi Dan. I've been fortunate to have worked in the circuit board industry for the past 30 years. My first eight years were spent in PCB manufacturing, and in the past 22 years I've worked for suppliers of liquid photoimageable solder masks. I've had the privilege of working for Taiyo for the past seven years. My current responsibilities include all aspects of our business for the central region of the United States as well as Toronto and South America.

Michael Herkommer

DAN BEAULIEU: Michael, good to meet you. Tell us a little about yourself and your distribution company and its relationship with Taiyo.

MICHAEL HERKOMMER: Hi Dan, good to meet you too. Same as Don, I've also had some personal history in solder mask before I started with Umicore. Umicore´s electroplating division has been distributing Uyemura's PCB products in Europe for a long time. So, adding Taiyo was a complementary and logical step. We've been distributing Taiyo in Europe since 2006 when Taiyo´s European business set-up was realigned. Umicore employs four solder mask specialists and another six local sub-reps in various countries.

DAN: Michael, I know that Taiyo just wrapped up a good year in Europe. How did you do this in what was pretty much a down market?

MICHAEL: Indeed, 2010 was not only good in terms of sales growth (up 45% over 2009), but more in terms of Taiyo´s product and market consolidation in Europe. Even 2009 had been stable in sales. We did not try to capture market share by all means; we tried to follow a more sustainable approach. We've gathered some 15 new customers all over Europe last year. People in Europe are starting to appreciate the package that is available from Taiyo, especially the stability aspect - consistent quality, a stable supply chain and the latest technological achievements from Asia.

DAN: Don, how about here in North America? How did things go last year and what can we expect in the New Year?

DON: The last 12 months have been better than anticipated, as we exceeded our sales goals.  Going forward, we will continue to introduce new and upgraded products to the industry. We will also continue to strongly pursue new technologies and evaluate them based on potential interest from our customer base.

DAN: Don how does the market share look for you in North America? You're at over 80% now, so how high can you go?
 

DON: Years ago we were challenged by Taiyo to reach 60% market share in North America within a certain timeframe. We took the challenge personally and reached our 60% goal two years before the target date. Our market share is over 80% in North America. Growing market share isn't our only focus at this time; we will spend a majority of our efforts on new technologies to improve our customers' overall performance.

DAN: Michael, I would think that your growth potential in Europe is enormous.

MICHAEL: Sure, Dan. We've steadily increased our market share over the last three years and have now established all prerequisites (EHS-wise, logistically, technical support structure) for further growth. Taiyo's visibility in the European PCB market has been improved significantly over the last couple of years. Market share is not everything, but you have to have a certain critical mass to keep things going. In this respect we're now extremely well positioned and well on track.
 

DAN: How does the North American market compare to the European market?

DON: In North America we apply mask mainly by screen print application with some spray units scattered about. In Europe they use a curtain coating process as well as spray application. Developing in North America is done using an aqueous solution; much of Europe is still using solvent to develop rather than the aforementioned aqueous solution. As for technology, the US market is mainly quick-turn shops with small lot sizes that require fast turnaround. We are seeing more and more usage of LDI solder mask for their quick-turn and high-end products. We are also seeing a lot of new inkjet legend systems being introduced.

MICHAEL: My perception from the US market is that it´s similar to the EU market in terms of shop size and lot sizes. For Europe, there's maybe more industrial automation boards (and yet some automotive) around vs. more defense-related products in the US. Technologically, the US is maybe more advanced regarding product complexity vs. a wider product portfolio and a higher degree of automation even at smaller shops in Europe.

DAN: What would you say are the hot points in each region?

DON: Two areas immediately come to mind; the Minneapolis/Wisconsin/Chicago area and California are hot points as a large percentage of our business is generated from manufacturers in these two areas.

MICHAEL: Certainly the German-speaking area with its remaining five "volume manufacturers." But if you take them out of the equation, the remaining markets like Italy, France, the UK and especially the Eastern countries still enjoy an equivalent importance for us. We try to thoroughly balance our activities and try to be present where others step back.

DAN: How about technology? I know you are addressing the inkjet and LDI markets for example. How is that's going?

MICHAEL: Let me take the new legend inkjet for example. Taiyo's new UV-curable inkjet material exhibits far better application characteristics and final properties compared to what was available before. We have many inquiries right now as it is an ideal solution for small batch sizes and serialization. And it's working trouble-free. More inkjet products are in the development pipeline in Japan or at alpha-site testing now. This will not only keep Taiyo busy, but it also gives Taiyo direct involvement with designers, so they´re in the loop of what´s going on worldwide, especially in Asia. It's a bit similar to what has been kicked off with LDI inks some 10 years ago. Now the PSR-4000 LDI series is fully commercial and has regular worldwide users. The interest in this product (flex and rigid) is growing massively also in Europe right now. LDI-SM is where Taiyo can show "real references and production experience" (not "R&D references") to customers - and they do get this message!

DON: This question is very important to our industry, and to the success of our board manufacturers. Taiyo developed a true LDI solder mask years ago after extensive marketing told us that this technology is what our customers will need in the future. Well, the future is now, the product is here, and its growth is steady. It is the optimum product for eliminating registration difficulties. The inkjet market is growing rapidly, and Taiyo has developed a product that is being recommended by manufacturers of the best inkjet equipment on the market. Another growing technology you didn't mention is the LED market. What our customers must know is that not all masks are created equal. Taiyo has developed a mask specifically for LED application which is robust through multiple heat excursions. We continue to develop new products and improve current products in an effort to maintain our leadership in the industry.

DAN: Tell us about Taiyo's approach to customer support.

MICHAEL: Customers still expect a certain degree of technical service and this can only be maintained with a reliable support structure. Umicore is focusing on excellent support for existing and selected target customers, but we´re not desperately running after each and every butterfly. The consolidation in Europe's PCB industry will of course continue. Therefore, domestic solder mask suppliers will be reaching sooner or later a sub-critical mass to survive unless they re-focus to other industries, hence, de-focus away from PCB and provide less support. On the other hand, Taiyo is carefully adding new applications to their product and manufacturing competencies, but will focus and stick to what they're best at: R&D, manufacturing, selling and servicing inks.

DON: Our employees in our technical service group have worked in the industry for many years. They understand the process flow of circuit board manufacturing. Our approach is to be proactive by meeting with our customers and making process recommendations with quality improvements in mind. We feel we have a true partnership with our customers. All of our employees understand the value of customer service and strive to meet their needs. Everyone in our organization understands that customers have choices, so we all work hard to maintain a high quality of workmanship.

Dan Beaulieu is a sales and marketing consultant focused on PCB and EMS companies and their vendors. His company D.B.Management Group L.L.P. works with companies making sure they increase their market presence and their sales. His new book co authored with industry technology expert Robert Tarzwell is PCB 101 Handbook: A Book about Printed Circuits

He can be reached at 207-649-0879 and his email is danbbeaulieu@aol.com

Their web site is www.dbmpcb.com