The global electronics is expected to grow through 2014 and accelerate into 2017, with stronger growth in emerging markets, the company said.
Electronics output in Japan declined for the third consecutive year in 2013, with output falling by 3.2% during the year against double-digit declines in the prior two years. The economic policies being implemented by the government have led to an improvement in exchange rates and a spurt in exports. In 2014, the recovery which started in the prior September is expected to strengthen due to the continuation of the government's economic policies and the on-going boost to exports provided by the weak yen. As a result, market growth in local currency is forecast to increase by 3.7%.
Taiwan's electronics industry is today dominated by a small number of large groups. In addition to the capital intensive semiconductor and display companies the country also has a significant number of original design manufacturers (ODMs) which hold a major share in the global production of computer and communications products. Production for a significant proportion of high volume products manufactured by ODMs is now undertaken in China. In 2013, electronics output increased by 6.5% although growth was primarily driven by the key semiconductor segment.
Taiwanese companies will continue to look offshore to reduce costs although the benefits of manufacturing in China will be impacted by rising wages in the country. The semiconductor segment, through the country's leading position within the foundry business, will be key driver to growth over the medium term.
Electronic output in Malaysia increased by 2.5% in 2013 and followed a decline of 3.1% in the prior year. A recovery in the semiconductor segment combined with an improved performance in the consumer segment offset further declines in the production of computer hardware. Continued growth in new investment will help boost production in the medium-term although output could still be influenced if established manufactures look to adjust capacity or move production to other countries. The trend to higher value-added production will continue with the country continuing to be an attractive location for the world's leading electronic manufacturing service providers.
The emphasis on low cost manufacturing, which has driven the growth in the emerging countries and in particular China, is today being questioned. It is expected that companies, including those in the industrial, automotive and medical sectors, will look to increase manufacturing, either internally or through partners in the emerging markets.
Cost will continue to be a key factor for the high volume products within the consumer, computer and communications (3C) segment. Escalating costs in China is pushing manufacturing in the country from the coastal cities further into the mainland but there is also evidence that overseas manufacturers are looking to alternative locations and to spread manufacturing across several countries.
Electronic output in Malaysia increased by 2.5% in 2013 and followed a decline of 3.1% in the prior year. A recovery in the semiconductor segment combined with an improved performance in the consumer segment offset further declines in the production of computer hardware. Continued growth in new investment will help boost production in the medium-term although output could still be influenced if established manufactures look to adjust capacity or move production to other countries. The trend to higher value-added production will continue with the country continuing to be an attractive location for the world's leading electronic manufacturing service providers.
The emphasis on low cost manufacturing, which has driven the growth in the emerging countries and in particular China, is today being questioned. It is expected that companies, including those in the industrial, automotive and medical sectors, will look to increase manufacturing, either internally or through partners in the emerging markets.
Cost will continue to be a key factor for the high volume products within the consumer, computer and communications (3C) segment. Escalating costs in China is pushing manufacturing in the country from the coastal cities further into the mainland but there is also evidence that overseas manufacturers are looking to alternative locations and to spread manufacturing across several countries.
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