Asia Challenged to Continue as the World’s Producer and Exporter of Electronic Assemblies

With the global outlook for 2008 shadowed by rising oil prices, accelerating inflation in both China and India, and the health of the US economy, sentiment for Asia’s electronics manufacturing sector remains strong. According to World Bank’s World Development Indicators online database in June 2007, East and Southeast Asia accounts for more than 40 percent of the world’s combined GDP for exports of manufactured products. However as companies continue to look for cost efficiencies, traditional contract manufacturing powerhouses in Asia like Singapore, Malaysia, Taiwan and South Korea are under pressure from new markets in the region and further afield.

Dialogue on many issues facing the industry in the region underpins Asia’s continued leadership as the world’s leading electronics manufacturing hub for the years to come. Electronics manufacturers are facing many challenges such as wasteful manufacturing, intellectual property rights, decrease in consumer spending on electronics due to the credit crunch, fears of rising inflation and competition from non-Asian manufacturers like Mexico re-emerging as an increasingly important manufacturing base to supply to the US market. In addition, the European Union’s Restriction of Hazardous Substances (RoHS) directive noted the growing concern and preference for environment friendly products and processes, manufacturers face a great deal of added pressure from legal responsibility, expended resources and product quality.

Other than employing improved manufacturing technologies and streamlined processes to minimize costs and optimize manufacturing, electronics manufacturers need to implement a broader scope of activities and strategies to elevate the value chain to enhance competition. The continued expansion of the electronics manufacturing services (EMS) suppliers’ role in terms of design for manufacturability and supply chain, innovation, operational excellence and sustainability, are key factors for the future growth of the industry. This can also be achieved by adopting cost-saving measures like energy-efficient manufacturing and initiatives to decrease the harmful effects to the global environment, and to uphold health and safety directives.

“We see new opportunities in the electronics manufacturing industry amidst the many challenges that have recently arisen in the global market, from increasing inflationary pressures to more countries entering the contract manufacturing arena. Core manufacturing competencies and growing cost-effective skilled workforce have helped Asia be the leader in electronics manufacturing for many years. By taking advantage of these competencies and also constantly improving on the skills and strategies to elevate the value chain, Asia will continue to lead as the world’s producer and exporter of electronics. The challenge is to identify the higher value segments in the electronic components market, for example integrated circuits, testing and development of components and even design, which require higher levels of skilled workers to utilize advanced manufacturing technology” said Michelle Lim, General Manager for Reed Exhibitions, Singapore and Malaysia.

“Reed Exhibitions is proud to host GlobalTRONICS 2008 in Singapore as this is Asia’s dedicated international sourcing, networking and educational platform for the electronics manufacturing industry for optimized manufacturing efficiencies and enhanced competitiveness, closer to home. It is the key electronics manufacturing platform of choice for major multinational and regional manufacturers in Asia as it brings together leading industry players and decision makers and is aimed to help them deliver and added value to their customers via insights on the issues, trends and developments of the industry in today’s environment,” she added.

GlobalTRONICS 2008 will be held from 9 to 12 September 2008, at the SUNTEC Convention Centre, Level 4. This event will feature a Technology Forum that will showcase a lineup of prominent speakers from the industry who will present a wide range of products and services that cater to the trends of the industry today. GlobalTRONICS 2008 will also feature various informative seminars, conferences and workshops that will include the EDN Asia Embedded Systems Seminar, GlobalTRONICS Supply Chain and Logistics Conference and conference topics such as Surface Mount Technology, and key upcoming technology and manufacturing trends.

www.globaltronics.com.sg