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Component production shows rebound
Time:[2012-07-09] | Back
The supply of electronic components from the region is on track for a 20 percent growth, as makers gear up for capacity expansion and increased exports.Over the years, electronic components in China has transitioned from an emerging segment into a pillar industry that has significantly contributed to the national economy and underpinned the development of the region’s entire consumer electronics, computers and communication sectors.Estimates by the China Electronic Components Association (CECA) places China at the top of the electronic component supply chain. The mainland produces 30 percent of the world’s electronic components—LEDs, resistors, capacitors, inductors, micromotors, PCBs, cable assemblies, relays, switches and crystal components. Aggregate electronic component exports are estimated to hit $35 billion this year.The electronic components and devices industry accounts for about a fifth of the total output value of Greater China’s electronic information industry, according to the 2007-2008 Report on the Competitiveness of China’s Electronic Components & Devices Industry released by industry research center CCID Consulting.Domestic output of micromotors and acoustic components represent up to 60 percent of the world production. Moreover, half of the world’s crystal components are made in Greater China.However, the heyday of these mainland-based industries were marred by the recent global economic downturn, resulting in skyrocketing material and labor costs and critically narrow profit margins. China customs statistics pegged the export value growth of electronic components at a robust 32.5 percent in 2006, which tumbled to 23.2 percent in 2007. Interviewed companies forecast growth prospects at a conservative 15 to 20 percent.
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