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Global Outsourcing Trends and China’s Electronics Industry

Explore the growth of China's electronics industry as a global leader in outsourcing, and the competitiveness of the Pearl River Delta. Discover the reasons behind the increase in outsourcing and the advantages of choosing China as an outsourcing destination.

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Global Outsourcing Trends and China’s Electronics Industry

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  1. Worldwide Outsourcing Trend and China’s Electronics Industry Presented by: Dr. Chan Kei Biu Chairman Hong Kong Electronic Industries Association 22 September 2004

  2. Worldwide Electronics Manufacturing and Outsourcing Overview Electronics Industry in China The Pan-Pearl River Delta in China Competitiveness of the Pearl River Delta TABLE OF CONTENT

  3. WORLDWIDE ELECTRONICS ASSEMBLY INDUSRY Source: Electronic Trend Publication, published in Manufacturing Market Insider, July 2004

  4. ELECTRONICS INDUSTRY’S GROWTH Source: Electronic Trend Publication, published in Manufacturing Market Insider, July 2004

  5. OUTSOURCING PENETRATION Source: Technology Forecasters, Q4 2003

  6. More cost effective Efficiency and flexibility Better risk management model – able to cope with volatility Less capital investment EMS – more advanced technology and equipment OEM adaptation of HP and Dell model REASONS FOR INCREASE INOUTSOURCING

  7. More ODM More outsourcing moving to China More Box Build Technology towards Chip-scale packaging OBSERVATIONS – THE GLOBAL TREND

  8. CHINA LEADS IN EMS Source: iSuppli, June 2003

  9. Lower cost structure – land, workers and engineers Already attained world class quality Local component supply chain Flexibility Opportunities in huge domestic market WHY CHINA?

  10. Electronics Industry in China

  11. CHINA’S ELECTRONICS INDUSTRY IN 2003 Source: Ministry of Information Industry of China

  12. THE PAN-PEARL RIVER DELTA (PPRD) AND OTHER VITAL ECONOMIC AREAS Boahai Economic Zone Yangtze River Delta CHINA Pan-Pearl River Delta

  13. 2003 GDP OF THE PAN-PEARL RIVER DELTA Source: China Statistics Bureau, Hong Kong Census & Statistics Dept, Macau Statistics and Census Service, World Bank, CIA World Factbook

  14. INDUSTRIAL STRUCTURE OFTHE PEARL RIVER DELTA IN 2002 * Rounded figures Source: Guangdong Statistical Yearbook Electronics and electric equipment manufacturing shared 40% of the total industrial output!

  15. Competitiveness of the Pearl River Delta

  16. COMPETIVENESS OF THE PRD • Efficient and established infrastructure – transportation and communication • Full range of component manufacturers and technical support • Clustering of suppliers – JIT operation • High concentration of OEM customers • High quality, flexibility and fast response • 24/7/365 operation • On-demand mode

  17. HONG KONG-PLUS MODEL • Gateway to China: • Sound tax and legal systems • Sizeable equity market • Efficient government with no corruption • Understand both international and Chinese cultures • Fast response • Strong business integrity

  18. SUMMARY China is now factory of the world!

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