The Swiss PME, Tec-Sem AG, operates in a highly competitive niche market. Contractual negotiations are tough, especially on the financial level. If Tec-Sem wants to stand out against its international competition, it does not have any leeway in the negotiations surrounding the contract. As a consequence, buyers do not make any down payments and the exporter does not have access to this funding during the production stage. This was the case when a semiconductor manufacturer in Taiwan ordered a storage system for photomasks.
Liquidity thanks to SERV insurance
A working capital insurance from SERV covered the loan of 750,000 Swiss francs to finance the manufacturing costs. This allowed Tec-Sem to obtain the loan without providing further collateral and thus without experiencing a liquidity squeeze. SERV covered the production risks itself with a pre-shipment risk insurance. The manufacturing costs of 189,000 Swiss francs are thus insured against political risks in Taiwan as well as against non-payment of the Taiwanese buyer. Thanks to SERV's support, Tec-Sem can carry out this export transaction without putting its money at risk nor losing its liquidity.
Thanks to its Swiss know-how, Tec-Sem has established itself as a leading supplier of automation solutions for the semiconductor and electronics industry. Tec-Sem produces wafer-transfer systems and other high-tech solutions for handling semiconductor wafers and photomasks (reticles). The firm is based in Tägerwilen in the Canton of Thurgau and has around 35 employees in Switzerland.