For years, Taiwanese electronics contract manufacturers have flocked to Chinese cities such as Shenzhen, Guangzhou, Suzhou or Wuxi to maximize their revenues and minimize their costs.
But Southeast Asia, and in particular Vietnam, is firming as an alternative base for contract manufacturers, iSuppli Corp said in a report yesterday.
"A new hot spot has emerged in electronics manufacturing: Southeast Asia; namely Singapore, Malaysia, Thailand and -- most prominently -- Vietnam," the El Segundo, California-based market researcher said.
The Southeast Asian contract-manufacturing market -- including electronics manufacturing services and original design manufacturing providers -- is poised to top US$24.9 billion by 2011, from US$16.2 billion last year.
The market achieved a compound annual growth rate of 9.1 percent, the technology researcher said.
By 2011, Southeast Asia will account for 7 percent of global electronics contract-manufacturing revenues, up from 6.3 percent last year, iSuppli forecast.
Vietnam has offered investment and tax incentives to foreign companies to boost its high-tech sector and reduce the country's dependence on agricultural products.
The country has attracted investment from a number of Taiwanese manufacturers, with Compal Electronics Inc (
On June 15, Compal chairman Rock Hsu (許勝雄) told reporters after the annual shareholders meeting that the company would invest in Vietnam. He said the move was part of a strategy to boost notebook production capacity to catch up with sector leader Quanta Computer Inc (廣達電腦).
Compal hopes to churn out 20 million portable computers this year, up from last year's 14.5 million. It shipped 9.8 million in 2005.
The Vietnamese government said last month it would give priority treatment to Compal, which will invest US$500 million in a plant in Vinh Phuc Province, near the capital Hanoi.
The company already has production plants in Poland, China, Thailand and the Philippines.
But despite signs of a Southeast Asian resurgence, China's role as the world's preeminent workshop for electronics manufacturers is likely to continue for years to come.
iSuppli projected that 52.4 percent of all contract-manufacturing revenues last year were generated by companies operating in China, including Foxconn International Holdings Ltd (
SETBACK: Apple’s India iPhone push has been disrupted after Foxconn recalled hundreds of Chinese engineers, amid Beijing’s attempts to curb tech transfers Apple Inc assembly partner Hon Hai Precision Industry Co (鴻海精密), also known internationally as Foxconn Technology Group (富士康科技集團), has recalled about 300 Chinese engineers from a factory in India, the latest setback for the iPhone maker’s push to rapidly expand in the country. The extraction of Chinese workers from the factory of Yuzhan Technology (India) Private Ltd, a Hon Hai component unit, in southern Tamil Nadu state, is the second such move in a few months. The company has started flying in Taiwanese engineers to replace staff leaving, people familiar with the matter said, asking not to be named, as the
The prices of gasoline and diesel at domestic fuel stations are to rise NT$0.1 and NT$0.4 per liter this week respectively, after international crude oil prices rose last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) announced yesterday. Effective today, gasoline prices at CPC and Formosa stations are to rise to NT$27.3, NT$28.8 and NT$30.8 per liter for 92, 95 and 98-octane unleaded gasoline respectively, the companies said in separate statements. The price of premium diesel is to rise to NT$26.2 per liter at CPC stations and NT$26 at Formosa pumps, they said. The announcements came after international crude oil prices
SinoPac Financial Holdings Co (永豐金控) is weighing whether to add a life insurance business to its portfolio, but would tread cautiously after completing three acquisitions in quick succession, president Stanley Chu (朱士廷) said yesterday. “We are carefully considering whether life insurance should play a role in SinoPac’s business map,” Chu told reporters ahead of an earnings conference. “Our priority is to ensure the success of the deals we have already made, even though we are tracking some possible targets.” Local media have reported that Mercuries Life Insurance Co (三商美邦人壽), which is seeking buyers amid financial strains, has invited three financial
CAUTION: Right now, artificial intelligence runs on faith, not productivity and eventually, the risk of a bubble will emerge,’ TIER economist Gordon Sun said Taiwanese manufacturers turned more optimistic last month, ending a five-month streak of declining sentiment as concerns over US tariffs, currency volatility and China’s overcapacity began to ease, the Taiwan Institute of Economic Research (TIER) said yesterday. The manufacturing business confidence index rose 1.17 points from June to 86.8, its first rebound since February. TIER economist Gordon Sun (孫明德) attributed the uptick to fading trade uncertainties, a steadier New Taiwan dollar and reduced competitive pressure from Chinese producers. Taiwan’s semiconductor industry is unlikely to face significant damage from Washington’s ongoing probe into semiconductors, given the US’ reliance on Taiwanese chips to power artificial
RSS