Advantech to Support Qseven COM

Advantech joins Taiwanese industrial PC manufacturer IEI Technology Corp. in supporting the Qseven computer-on-module (COM) form factor. The Qseven form factor specifies a 70mm x 70mm COM and only provides support for the latest serial interfaces. No legacy interfaces (e.g. ISA) are supported. According to the Qseven presentation, the new form factor is neccessary to enable COM to support the latest 45 nm chipsets and the latest graphics interfaces.

According to Electronicstalk:

Advantech has joined the ranks of supporters of the new Qseven computer-on-module (COM) standard This brings the total number of companies that actively support the new Qseven COM standard to a total of 11

Qseven, initiated by Congatec and Seco, is the first COM standard that is specifically designed for mobile applications requiring the latest low-power processor technologies within a small footprint.

With a maximum power consumption of 12W specified in the standard, the new form factor is expected to appeal to manufacturers of applications that require battery operation.

"We are faced with a rapidly growing market for ultra mobile applications", says Jeff Chen, CTO of Advantech.

"Qseven is perfectly streamlined to this emerging market".

"I'm confident that Qseven will establish itself as the global industry standard of the future".

"Due to the strong support from the embedded community Qseven is already a de facto industry standard today".

"Qseven enables new applications in mobile and battery powered systems, which current solutions do not support adequately".

"This will open exciting new markets", says Gerhard Edi, CEO of Congatec

The proliferation of new form factors in the embedded computing industry is exciting and enables system develops to create better systems and applications. The Qseven standard will certainly enable baseboard designers to develop small baseboards for specific applications in mobile devices.

Presentation: Small Form Factor for Ultra Mobile Applications
Electronics Talk: Computer-on-module standard gathers support

Advantech Buying BCM Embedded

Advantech is, according to China Economic News (CENS), set to buy a controlling stake in BCM Embedded, a motherboard distributor.

To accelerate the development of dual-branding strategy, Advantech Co., one of Taiwan`s major manufacturers of industrial computers, will merge with BCM Embedded Computer Inc. through its fully-owned Advantech Fund A by the end of June.

Advantech Fund A has a 50% stake in BCM which focuses on distribution of industrial motherboards. In mid-June, Advantech director board passed a proposal to increase investment of NT$200 million (US$6.6 million at US$1:NT$30.3) in Advantech Fund A to take controlling stake in BCM, which will become Advantech`s distribution unit after the merger. Advantech will continue to engage in M&As at home and abroad, with the effect of the M&A to show sometime in 2009.

It seems M&A are all the rage this year in the IPC industry. Earlier in the year Adlink bought out Ampro. The number of companies in the sector are getting smaller for sure and IPC companies are, out of neccessity, becoming more and more vertically integrated.

Article: Advantech to Merge With BCM Embedded Computer by June End

Interview with Adlink GM P.J. Go

In an Embedded Computing interview Adlink's general manager P.J. Go describes the motivation behind Adlink's recent acquisition of U.S. based Ampro:

The main reason we wanted to buy Ampro is because the company plays very strongly in the U.S. Military, aerospace, and medical markets. We have had fairly limited success penetrating those markets here in the United States. In addition, Ampro gives us a great revenue base in the United States. Our U.S revenue will represent 35 percent of the company’s total revenue, instead of the 15 percent that it represented previously.

Ampro also adds to our toolkit expertise in extended temperature and the shock and vibe specs required by the military and aerospace market. Ampro is used to building boards that can go from -40 ºC to +85 ºC for operating temperatures. ADLINK had been doing -20 ºC to +70 ºC or usually, 0 to 50 ºC.

Of course, as noted earlier, this makes Adlink the third largest IPC provider in Taiwan behind Advantech and ICP Electronics.

This horizontal merger is classic product and market diversification through merger and acquisitions (M&A). Many companies do this so as to develop better positions in foreign markets, to secure more reliable distribution networks in new markets and to purchase new expertise and product lines. Clearly Adlink are hoping to learn how to develop more durable systems. One of the biggest challeneges for Adlink will be cross-cultural management. Despite this, this acquisition seems to be a big win for Adlink. However, as with most M&A, only time will tell.

Interview: A few minutes with ADLINK’s PJ Go and Jeff Munch

Can Adlink become Taiwan's Second Biggest IPC Maker

An article on Digitimes suggests Adlink wants to become the second largest Industrial PC (IPC) manufacturer in Taiwan. Since I work for an IPC company myself this article is interesting. The IPC industry is a very unique, niche industry and the current giants, Advantech and Kontron, continue to do well in innovation and ICP Electronics continues to grow with their IEI Technology Brand. Advantech have recently restructured their own organization and continue to lead the field.

From the article it does seem that Adlink are moving into systems as most IPC companies are now. Most IPC companies started out as industrial motherboard manufacturers and have evolved into systems development. Some of the bigger application areas include Medical PCs, Panel PCs, digital signage and point of sales (POS) machines. Most significant IPC companies are moving in that general direction. It will good to see how the competitive IPC environment plays itself out over the coming years.

Digitimes quotes company chairman James Liu as saying:

"The planned large growth in consolidated revenues will come mainly from industrial automation product lines and embedded-computing controllers applied to medical care, transportation and general engineering."

(Original Article: Adlink aims to be second largest Taiwan-based IPC maker)