RAD President: “Once you move your production offshore, you gradually lose the technology”
6 March, 2013
RAD Data Communications, owned by Yehuda and Zohar Zisapel, plans to enter the EMS (Electronic Manufacturing Services) market in Israel, in order to preserve local technologies
RAD Data Communications (RAD Communications), owned by Yehuda and Zohar Zisapel, plans to enter the EMS (Electronic Manufacturing Services) market in Israel. Techtime has learned that the company began outsourcing works for two companies belonging to the group, RADiFlow and RADWIN. “Our intention is to expand the service to include more local companies, outside our group,” said Yehuda Zisapel, Co-founder and President of RAD. The RAD Group owned by the tow brothers consist a dozen of high tech companies, mainly in the communication area, and reached about $1.2 billion sales in 2012.
The service will be provided through the company’s a manufacturing plant located in Mount Hotzvim in Jerusalem. The plant employs approximately 500 workers and consist 5 SMT production lines. It is a specialist in short run production rounds, even at miniature numbers of 5-10 electronic boards for a round.
Zisapel added: “We can make outsourcing production in China, India and Eastern Europe at excellent prices, but once you move your production offshore, you gradually lose the technology. United States gave-up the production of monitors and TVs, and now it can no longer return to production and development. The government of Israel should provide incentives to to preserve local electronic production, in order to ensure its technological knowhow.”
Eric Levine, COO of RAD, mentioned that self manufacturing is vital for RAD’s competitiveness: “We can fight the the Chinese in prices for short round production runs. There is also the issue of intellectual property protection. We produce 100% of our prototypes under development. Moving your prototypes to offshore outsourcing production, involve the risks of re-engineering and unauthorized copies of your technology.”