Atlas Motion Systems, a California-founded defense company, is preparing to ramp up its production in the Philippines—where it holds its first and only production and assembly line. From 10,000 motors made per month, it aims to increase capabilities to manufacture 40,000 motors monthly by the end of the year.
Production in the Philippines
The reason why the production is anchored in the Philippines—specifically in Laguna Technopark—is explained by cofounder and CEO of Atlas Motion Systems: “The Philippines has a super robust culture around component manufacturing … we’re pairing the best of California technology with the best of process knowledge that exists in the space in the Philippines”.
The company currently produces customized motors and actuators used in drones, robotics, and other applications, including defense. This is paired with Vector, its software application, to provide Atlas Motion Systems with the capability to design motors according to customer specifications. The company has customers in Nigeria, Poland and India. It states that it will pursue deals in the United States, Germany, Italy, Estonia, Denmark, Taiwan and South Korea.
The founders report that they plan to invest hundreds of millions of dollars towards production capability in the following years after demand increases; it is in talks with Philippine lending institutions to finance this. A “huge chunk of capital” will be allocated in the Philippines, and this marks a huge vote of confidence, and a large investment opportunity, for the country that has seen foreign investment rise steadily over the previous months.
Atlas Motion System’s Thesis
Atlas’ thesis revolves around the scalability of its production and its customizability to the demand of its customers. Whether the motors are for drone applications or robotics, its core tagline is that it is “built to ramp with you” without adversarial supply-chain dependence. Its process is to integrate through designing a product around one’s specifications, to evaluate by testing the systems in a matter of weeks, to manufacture at scale—or otherwise, and to constantly innovate should current architecture not meet the demand of the customer.
Although its designs are prototyped and tested in America, its sole manufacturing hub is anchored in the Philippines. According to the company, its production “in the Philippines, America’s oldest treaty ally in Asia, [holds] a workforce with generational depth in precision manufacturing, building at the scale modern programs demand without sacrificing the supply chain”.
Philippines as a Manufacturing Powerhouse
Looking at the progress that the country has made in terms of shifting its capabilities towards being an adept manufacturing hub, we can look towards its current facilities. There are hubs that specialize in manufacturing and assembling semiconductors. There are factories that produce components for foreign companies. Among other foreign demands, the Philippines plays a crucial role in centrality in Southeast Asia for its manufacturing reliability. The foreign investment that has come in for this reflects confidence in its capability.
Philippines’ Opportunity to Expand and Innovate Beyond Manufacturing
This said, analysts argue that the Philippines, while being a manufacturing base for other companies, lag behind other ASEAN and Asian countries in terms of the stage of the process. Where Singapore and other neighboring states are involved in development and research and development, the Philippines is still stuck in the manufacturing stage. Taiwan, for example, has become a global giant because it develops, produces and exports semiconductor chips from its own soil.
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