Manufacturers global from abroad China’s Consumer Electronics Manufacturing Will More Than Double by 2010

InStat: Low labor costs and a fast-growing domestic market will spur China’s consumer electronics manufacturing industry to more than double by 2010,. The industry will grow from $71.5 billion in 2006 to $167 billion in 2010. China’s mature supply chain, a skilled labor force, and convenient logistics are the key factors to attracting outsourcing manufacturers from abroad. About two-thirds of China’s electronics manufacturing revenue comes solely from foreign-funded or Sino-foreign joint ventures. The world’s top 10 electronics manufacturers have all invested in China and consider China to be a key region in their global manufacturing facility layout.

• China-based electronics manufacturing companies contributed about 8% of China’s total US$425 billion electronics manufacturing industry revenue in 2005.

• Compared to its mature manufacturing environment, China’s R&D ability, especially in chip design and solutions, is still weak: over 90% of chips for electronic manufacturing still depend on imports.

• A few Chinese fabless IC companies have set up successful models to win in niche markets like the video/audio chip market in mobile communication and MP3.

In-Depth Analysis: Electronic Manufacturing in China

Publ 20061011