Hong Kong EMS Firms Explore New Market Opportunities in China
24 August 2006
Hong Kong-based Electronics Manufacturing Services (EMS) providers are rapidly diversifying into new sectors, including automotive electronics, by adapting their strengths in existing consumer, communications, and computer peripheral products in China. They are also aggressively providing domestic OEMs with EMS services by expanding their production capacities in China, although their main customers remain overseas multinational OEMs.
For example, Surface Mount Technology Ltd. (SMT), a leading Hong Kong-based EMS provider, has established two new factories in Changchun City in Jilin Province and Tianjin to build new capacity for automotive electronics products. China First Automotive Works Group Corp. (FAW), the nation’s largest automaker has a vehicle production volume of more than 10 million units, and it is a major end customer of SMT.
China’s fast-growing economy is accelerating overall improvements in the population’s standard of living, although these gains tend to be uneven geographically. This has stimulated consumer demand for new automotive and medical electronics products. Both domestic and international manufacturers have been establishing new facilities in China to benefit from these market opportunities.
