Low labour costs and a fast-growing domestic market will spur China's
consumer electronics manufacturing industry to more than double by 2010, market
watchers predicted today.
Analyst firm
In-Stat
reported that the industry will grow from $71.5bn in 2006 to $167bn in 2010.
China's mature supply chain, skilled labour force and convenient logistics
are key factors in attracting outsourcing manufacturers from abroad.
"About two-thirds of China's electronics manufacturing revenue comes solely
from foreign-funded or Sino-foreign joint ventures," said In-Stat analyst Anty
Zheng.
"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.
"
The newly published In-Stat report estimates that Chinese electronics
manufacturing companies contributed about eight per cent of China's total $425bn
electronics manufacturing industry revenue in 2005.
Compared to its mature manufacturing environment, the study rates China's R
&D ability, especially in chip design and solutions, as weak. Over 90 per
cent of chips for electronic manufacturing still depend on imports.
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