Scottsdale, Arizona–Emerging nations such as Brazil, China, Israel, Malaysia, Mexico, Philippines, Singapore, Taiwan, Thailand, and Venezuela are playing increasingly greater roles in the growth of both regional and global electronics markets, according to a series of reports by Cahners In-Stat Group, a market research firm.
Ranked sixth in the world in 1999, the Chinese electronics market is expected to move to third place by 2003, providing significant opportunities for both domestic and overseas companies. “Growth will be boosted by the country’s entry into the World Trade Organization,” says Andrew Fletcher, an analyst with Reed Electronics Research, the division that compiled the reports. As a result, the Chinese electronics market will be propelled to $86 billion by 2003. In response to the burgeoning domestic market and growth in exports, electronics production is forecast to reach $60.8 billion in 1999–16% higher than in 1998.
A buoyant U.S. economy, coupled with accession to the North American Free Trade Agreement, has given Mexico’s electronics industry a major boost as well. Production increased by more than 20% each year from 1993 to 1998. Although the rate of growth has slowed, an increase of 10% this year will increase Mexico’s electronics output to just under US$28 billion. As a result, Mexico’s share of North American output is forecast to reach 7.3% in 2000–up from 5.7% in 1997. A significant amount of electronics production in Mexico is carried out through the Maquiladora program, according to the reports. Approximately 3,800 Maquiladora plants employ 980,000 people–representing more than 30% of total employment.
“Although still dominated by US companies, Japanese manufacturers are making strategic investments in Mexico’s Maquiladora industry with the primary aim of increasing competitiveness in the US market,” says Fletcher.
The report series, ‘World Electronics Report’, is offered by Cahners In-Stat Group in cooperation with Reed Electronics Research. The reports provide unique insight into the world’s electronics industry, according to Cahners, on a country-by-country basis.