Borui Advanced: China's SMT Pick-and-Place Machine Market Size and Industry Development Trends

I. Overview and Classification of SMT Pick-and-Place Machines

SMT stands for Surface Mounted Technology. An SMT placement machine, also known as a "mounting machine" or "surface mount system," is an essential piece of equipment on the production line. Positioned after the dispensing machine or screen printer, it uses a moving mounting head to precisely place surface-mount components onto the PCB pads.

II. SMT Pick-and-Place Machine Business Model

1. Production Model

A common production model in the SMT pick-and-place machine industry is the combination of "order-based production and planned production." Order-based production involves manufacturing single units or small batches of multiple product varieties, tailored specifically to meet contractual agreements or individual customer orders. In contrast, planned production refers to a more systematic approach where companies proactively organize production based on forecasts of end-customer replacement cycles for mechanical seal products, as well as factors like raw material procurement timelines, inventory levels, and overall manufacturing capacity.

Order-based production effectively prevents the potential for blind inventory buildup that can result from companies creating their own production plans. In contrast, make-to-plan production relies on relatively accurate demand forecasting, giving it an advantage in terms of immediate order fulfillment—but it also leads to higher inventory costs.

2. Procurement Model

Because SMT pick-and-place machines demand a high level of precision, selecting the right upstream raw materials is equally critical. Some SMT equipment manufacturers have established rigorous systems for vetting raw material suppliers, thoroughly evaluating their services, scale, delivery capabilities, and pricing. Additionally, they leverage Microsoft’s ERP system to automatically calculate raw material requirements based on specific orders, then place orders directly with qualified suppliers. Meanwhile, for raw materials purchased in larger quantities, certain pick-and-place machine companies even adopt a bidding process to further reduce procurement costs.

3. Sales Model

SMT pick-and-place machine companies typically employ a sales strategy that combines direct sales with distribution. Most of their sales come from directly reaching end customers, while a smaller portion is distributed through trade partners. Direct sales involve manufacturers selling products directly to end customers, whereas trade partner sales mean manufacturers supply products to distributors at a fixed price, who then resell them to their own target customers.

III. The SMT Pick-and-Place Machine Industry Chain

The upstream sectors of the SMT pick-and-place machine industry include mechanical components, temperature control modules, precision lead screws and vision systems, motors, guide rails, computers, and sensors, while the downstream industries encompass consumer electronics such as color TVs, laptops, smartphones, and digital cameras, as well as automotive electronics and integrated circuits.

The development trends in SMT chip mounting can be summarized under the concept of "Three Highs and Four Transformations": high performance, high efficiency, high integration, along with flexibility, intelligence, sustainability, and diversification. These seven key indicators and directions are crucial for the advancement of SMT pick-and-place machines. In 2020, China's SMT pick-and-place machine market reached a size of 21.314 billion yuan, while by 2021, the market had grown to 22.025 billion yuan.

In an era of increasingly rapid product updates in the electronics industry, where the trend toward multi-variety, small-batch manufacturing is becoming the mainstream amid fierce competition, advanced packaging solutions like BGA, PoP, FC, and CSP are placing ever-higher demands on SMT pick-and-place machines. As a result, machine designs must evolve in tandem with these advancements. With the rise of modular and module-based systems, along with innovations such as dual-track conveyance, multi-arm configurations, and multi-head structures—plus cutting-edge technologies like flying alignment and lightning-fast mounting—today’s SMT machines are being reimagined to balance speed, precision, and versatility all in one platform. This shift is paving the way for a new generation of high-performance pick-and-place machines that combine ultra-high speed, exceptional accuracy, multifunctionality, and intelligent customization into a single, integrated solution. Looking ahead, as technology continues to advance and downstream market demand keeps growing, China’s SMT pick-and-place machine industry is poised for remarkable expansion and promising opportunities.