The dynamics of the electronics industry have changed. Volume production is gravitating towards lowcost locations, which in turn are the markets which offer the most longterm potential. Lower volume, highmix products will however continue to be manufactured in high-cost locations, creating significant opportunities throughout the supply chain.In 1995 production in “high-cost” locations* accounted for 75% of electronics output. By 2000 this figure had already fallen to 67%. However, following the collapse of the IT bubble in 2000 the transfer of production has accelerated and in 2005 high cost locations accounted for only 51% of the total. Between 1995 and 2005 Asia Pacific’s share of global electronics production increased from 20% to 40%. More importantly during this period China’s share of global electronics production increased from 3% to 18% and transformed the structure of the global electronics industry.Although China will continue to gain global share over the next five years and was forecast to surpass the US as the largest electronics producer in 2006, it will face increasing competition not only from other countries in Asia but also from lowcost locations in Europe and the Americas.  

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Yearbook of World Electronics Data Series - Volume 4 - East Europe
2007/2008
Published on July 2007
Report Summary
The dynamics of the electronics industry have changed. Volume production is gravitating towards lowcost locations, which in turn are
the markets which offer the most longterm potential. Lower volume, highmix products will however continue to be manufactured in
high-cost locations, creating significant opportunities throughout the supply chain.
In 1995 production in “high-cost” locations* accounted for 75% of electronics output. By 2000 this figure had already
fallen to 67%. However, following the collapse of the IT bubble in 2000 the transfer of production has accelerated and in 2005 high
cost locations accounted for only 51% of the total. Between 1995 and 2005 Asia Pacific’s share of global electronics
production increased from 20% to 40%. More importantly during this period China’s share of global electronics production
increased from 3% to 18% and transformed the structure of the global electronics industry.
Although China will continue to gain global share over the next five years and was forecast to surpass the US as the largest
electronics producer in 2006, it will face increasing competition not only from other countries in Asia but also from lowcost locations in
Europe and the Americas.
Yearbook of World Electronics Data Series - Volume 4 - East Europe 2007/2008 (From Slideshare) Page 1/3

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