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 US$71.5 billion in 2006 to US$167 billion 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 percent of China's total US$425 billion 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 percent of chips for electronic manufacturing still depend on imports.
China cashes in on consumer electronics bonanza
By Robert Jaques on Oct 13, 2006 11:51AM