HONG KONG If it isn't made in China yet, it soon will be or maybe India, Thailand, or Vietnam. A new report asserts that by 2011 Asia will substantially increase its share of the electronics manufacturing services and original design manufacturing markets.
The Asia contract electronics manufacturing market will grow from $121.5 billion in 2006 to $281.8 billion in 2011, according to market researcher In-Stat. Consumer electronics will experience the fastest growth rates, followed by the communications segment, the report said.
China's seemingly bottomless pool of cheap labor will give it the low-cost edge, allowing it to suck in nearly 76 percent of the Asian EMS/ODM market by 2011.
Overall, Asia will account for 55.1 percent of the global EMS market in 2011, up from 45 percent in 2006. Even though China will dominate the EMS/ODM market mostly through Taiwanese and other multinational companies that operate there countries like India, Thailand, and Vietnam will emerge as credible contenders.
"OEMs continue to leverage the cost structure of EMS players and outsource their manufacturing to low-cost centers in Asia," said Mayank Jain, an In-Stat analyst. "In key Asian markets, OEMs have persuaded EMS players to establish their local operations so they can capitalize on the domestic demand as well."