Heraeus Materials Singapore Pte Ltd bags Singapore Business Review Award for Manufacturing

Its team created a new business model that supported 5G high speed for semiconductor makers, doubling their revenue even during the pandemic.

Heraeus Holding GmbH is a leading technology company headquartered in Germany. Founded in Hanau in 1851, the company is one of the largest family-owned companies in terms of revenue. The company currently employs about 14,900 people in 40 countries worldwide.

Heraeus Electronics (HET), a global business unit of Heraeus, is an expert for materials and matched materials solutions for the electronics packaging. With 1,277 employees, it has 188 located in Singapore for R&D and manufacturing products, shipping to customers globally to serve their automotive, power and communications needs. Besides leveraging their strong intellectual-property landscape, Singapore offices hold several key global functions in sales & order management, product marketing and procurement.

Current technology trends are driving towards 5G Communications, and market demands are increasing exponentially. With 5G Smartphones enabling more powerful features in smaller and slimmer spaces, HET found an opportunity to apply its expertise and products to respective applications.

HET developed a new strategic business model to disrupt traditional semiconductor value chains by approaching fab-less companies and original device makers (ODM) to design-in its products which increased revenues significantly – despite the global pandemic. This new approach expects revenues and market share to increase further.

The business model starts by identifying top players in 5G mobile communications semiconductor devices including “fab-less” companies where they outsource manufacturing to assembly and test (OSAT) companies; and ODMs who design, produce and sometimes outsource their production. Because of the complexity within such leading-edge technologies, materials selection decisions lie with these leading players instead of the subcontractors.

HET teams worked closely with these companies, demonstrating product innovations and unique selling propositions of the proprietary Welco® technology that enables miniaturization with high yield. Leveraging on strong German engineering culture, diverse talents in Singapore and collaborations with US, Chinese, South Korean and Taiwanese teams, HET successfully captured Smartphone 5G Radio Frequency Front-end module businesses of the top mobile communications' semiconductor companies. Currently, almost all 5G high-end Smartphones launched in 2020 use HET Welco® materials that are developed and produced in their Singapore factory.

Watch the interview below to know more about their winning project: