The electronic components industry is a global and strategic sector. There are several different types of player in this market:
- “Fabless” producers without manufacturing facilities, who are focused on product design
- Sub-contracted manufacturers
- Producers specialized in making the boards onto which the electronic components are mounted
There are few European players in this market.
Overall, this sector is experiencing a growth rate of around 5% p.a., which is above the global GDP growth rate. The share taken by electronics is growing in all industrial sectors. This is especially the case in the automotive, logistics, defense, aerospace, telecoms, chemicals and healthcare sectors as well as in the green economy.
This sector is extremely capital intensive, and the products have a short life span as a result of constant innovation. There is a significant presence of R & D facilities in France and in Europe but manufacturing is dominated by the United States and Asia.
An example of a successful assignment:
A French group employing 1,000 people specializing in the manufacture of boards for semi-conductors asked Zalis to help them in producing a rescue plan.
Faced with a substantial drop in orders from an important customer in the telecoms sector, the group was operating below break-even. It could not meet its cash needs, and its ability to continue was threatened.
In this difficult situation Zalis first participated in the production of a rescue plan, by:
- Analysing the industrial, commercial and financial situation,
- Establishing a list of the different strategic options that were attainable, and
- Advising the group on the different operational structures that could be envisaged.
Zalis then guided the group in the search for a trade investor:
- Undertaking the background research, the communication and the marketing of the different schemes proposed to the different stakeholders,
- Advising the group on the identification and qualification of potential acquirers, and
- Participating in the negotiations with the potential acquirers.
One year later the group was acquired by a German trade buyer, a major player in the sector. This assignment contributed to saving all of the 1,000 jobs in the group.