Demand for Consumer Electronics to Boost Asia’s Leadership in Electronics Manufacturing

According to the Consumer Electronics Association (CEA), global consumer electronics revenue is projected to grow by almost 10 percent in 2008 to reach a staggering $700 billion. The continuing strength in the electronics manufacturing sector as a whole in emerging markets in the Asia Pacific region is providing a level of resiliency that ensures the demand for new technology remains robust. This appetite for new consumer electronic products, ranging from consumer electronics such as LCD television sets, video camcorders, computers, DVD players and navigation devices to mobile handsets is a welcome trend, given the shadow of gloom over the global rise in oil prices, accelerating inflation in both China and India, and the health of the US economy.

This bodes well for Asia’s electronics manufacturing sector, since the World Bank’s World Development Indicators online database estimates that East and Southeast Asia accounts for more than 40 percent of the world’s combined GDP for exports of manufactured products (June 2007).

Asia's electronics manufacturing sector is holding up because of the strong, consistent demand from countries such as Brazil, Russia, India and China, which collectively form the BRIC cluster of markets with particularly high demand for consumer electronics. The need for newer technology for the latest electronic devices and mobile phones helps fuel demand for semiconductors, which is a critical component of electronics. In a projection by the Semiconductor Industry Association (SIA), which represents the US microchip manufacturing industry, global chip sales is forecasted to grow by 6 percent in 2009.

“Like everywhere else, there’s a nervousness in the region over potential further slowdown in the global economy in the second half of the year. But overall, the electronics industry has been riding out the storm so far,” said David Cohen, Director of Asian Economic Forecasting at Action Economics at a recent roundtable discussion organised by Reed Exhibitions as a lead up to GlobalTRONICS 2008.

Given the boom in consumer electronics, manufacturers are tasked with the challenge of employing improved manufacturing technologies and streamlined processes to minimize costs and optimize manufacturing. Overcoming these challenges will in turn aid in shortening the time-to-market period in order to meet the constant demand from consumers who desire the latest devices.

The continued expansion of the electronics manufacturing services (EMS) suppliers’ role in terms of design for manufacturability, 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. This comes at a time when environmental and pollution prevention issues are adopted and taken seriously in the manufacturing sector and manufacturers have to constantly re-evaluate their processes and refine them.

“Going green is fundamentally a co-operative process. A vast majority of successful green initiatives is based on improving work processes with suppliers, partners and logistics providers. The push towards going green will also encourage companies to adopt new and more advanced processes, potentially improving financial ROI as well as enhance corporate social responsibility awareness.” says Michelle Lim, General Manager for Reed Exhibitions, Singapore and Malaysia.

“We see new opportunities in the electronics manufacturing industry to evolve and rise above the many challenges in the global economy. We are confident that Asia will maintain its strength in the core electronics manufacturing competencies and grow strength-to-strength in providing a cost-effective, skilled workforce to meet these manufacturing needs. This also poses a challenge 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” she continued.

“Reed Exhibitions is proud to host GlobalTRONICS 2008 in Singapore. It is a major event that brings together leading industry players and decision makers from the different electronics manufacturing segments, all under one roof. Through our series of conferences, seminars and workshops, these industry professionals can gain valuable insights on the issues, trends and developments of the industry that impact their businesses,” added Lim.

GlobalTRONICS 2008 will be held from 9 to 12 September 2008, at the SUNTEC Singapore, Level 4. This event will also include the EDN Asia Embedded Systems Seminar, GlobalTRONICS Supply Chain and Logistics Conference as well as workshops addressing on emerging technologies in the evolving market.

www.globaltronics.com.sg