Press Releases

This is a question that seems to be on people’s minds. There are effectively three issues that are slowing the migration of electronics manufacturing to Asia: rising labor costs in China, greater consideration of proper Total Cost of Ownership analysis in outsourcing decisions, and the new trend of insourcing by certain OEMs.

The recession has accelerated the shift of global electronics to China, including not only manufacturing but sales and design. China is growing as a global consumer of electronics, and Chinese companies like Huawei are overtaking multinational competitors. Electronics.ca InForum’s forecast supports the view that the current recovery is real and sustainable, based on extraordinary government efforts and on Chinese-led growth. However, significant challenges to consumer spending and the inability of developed countries to sustain recovery efforts indefinitely, will lead to a long period of below normal growth.

According to the latest IDC Asia/Pacific Quarterly PC Monitor Tracker report, the PC monitor market in Asia/Pacific excluding Japan (APEJ) region totaled 29.5 million units in 1H09, representing an increase of 4.8% over 1H08, and 7.6% over 2H08. The healthy demand for entry-level LCDs due to increasingly affordable 16:9 units lifted the market to beat forecasts by 6.1%. The PRC, Thailand, Vietnam, the Philippines, and Singapore posted a double-digit sequential growth in 1H09. Although CRT sales experienced a drastic 69.5% sequential decline, total LCD sales, despite a larger base, increased by 14.6% over 2H08.

Organizations in the Asia-Pacific excluding Japan (APEJ) region are currently implementing significant business transformations, including seeking new business process outsourcing (BPO) business models and services that will have a direct impact on bottom lines and transform businesses, in preparation for the impending market recovery in 2010. Concurrently, BPO services providers are ironing out platform-based services (Platform BPO) offerings to suit current market conditions and are doing away with the traditional lift and shift business models. Given these movements in the market, IDC expects to see long-term market growth in the APEJ BPO market starting 2010. Based on forecast and analysis of the market between 2009-2013, the market is predicted to grow at a compound annual growth rate (CAGR) of 11.2% from US$17 billion in 2008 to US$29 billion in 2013 lead by Platform BPO services.

According to s new analytical study on the sector "Indian Telecom Analysis (2008-2012)" available at Electronics.ca Publications, mobile telephony, in particular, continues to fuel growth of the Indian telecom sector, with mobile subscribers projected to grow at a CAGR of around 15% between 2009-10 and 2013-14.

China Mobile and Shaanxi provincial government have entered into an agreement, whereby China Mobile will earmark 23 billion RMB (US$3.4 billion; US$1 = 6.8 RMB) for IT network deployment in Shaanxi over the next five years.

In the wake of an announcement made by GSMA (Global System Mobile Association) in February 2009 that it had signed an agreement with 17 mobile phone makers to adopt a common Micro USB-based AC adapter by 2012 for their mobile phones, the European Commission recently has entered into a similar agreement with ten mobile phone makers, whereby the latter agreed to sell their mobile phones with universal mobile phone chargers starting in 2010.

Japan's Elpida Memory has decided on a new product-specific line manufacturing system for its DRAM (Dynamic Random Access Memory) plant in Hiroshima, Japan. Pursuant to the new manufacturing scheme, the Hiroshima plant will be divided into two separate lines, one for mobile device-related DRAM products and the other for PC-related DRAM devices. Following the implementation of the new system in July, it is projected that the output of PC-related DRAM will be reduced by 10% to 20%.

In a continuation of the announcement made by Sony in March 2009 that it would begin talks with Seiko to form a LCD (Liquid Crystal Display) strategic alliance, Sony announced on June 30 that they have entered into an agreement whereby Seiko will transfer some of its small- and medium-size LCD operations to Sony by April 2010, JCN Newswire reported on June 30. No payment is involved in the deal though.

Korea's LG Display is expected to add a new 8G LCD (Liquid Crystal Display) panel line in the second half of the year. LG Display began operations at its firs 8G line in Paju, Korea in March 2009, and the line has already reached full capacity, with a monthly output of 83,000 glass substrates.