By Greg Gao

(JW Insights) Jun 29 -- Universal Scientific Industrial (USI环旭电子), a Shanghai-based electronic design and manufacturing service company, recently revealed that its Haiphong factory in Vietnam has already supplied module components for wearable watches to major clients. In the future, they also plan to establish a presence in Vietnam for the production of headphone and mobile-related products.

The decision to choose Vietnam as the location for module production is attributed to its proximity to Shanghai and Taiwan, which enables efficient technical support. The company is well-prepared to meet the demands of its clients.

Addressing concerns about lower gross profit margins, USI explained that their System in Package (SiP) products require self-purchasing of materials and high product integration, resulting in higher material costs and subsequently impacting gross profit margins.

USI further stated that with the future development of SiP technology, the company could serve more customers in the smartphone communication and wearable product module sectors. This aligns with their goal of achieving customer diversification and optimizing revenue structure.

The company will continue to strengthen its global operations and presence. In recent years, it expanded its European footprint by acquiring French electronic manufacturing services company Asteelflash and actively increased production capacity in its factories in Mexico and Vietnam. USI also recently held the inauguration ceremony for its second factory building in Poland. USI’s global operations strategy is based on its own product portfolio and customer structure, according to the company.

Within its key product areas, USI emphasizes module products and automotive electronics. Additionally, it plans to develop more Joint Development Manufacturing (JDM) business models, enhancing its collaboration with customers from initial product design, prototyping, and new product introduction to mass production services, thus increasing customer engagement, said the company.

Founded in 2003 in Shanghai, USI is a subsidiary of ASE Group in the Taiwan region. The company provides design, miniaturization, material sourcing, manufacturing, logistics, and after-services of electronic devices/modules for brand owners. It went listed on the Shanghai Stock Exchange in 2012.