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EMS Industry Documents - Service level agreements, factory audit templates, supplier checklists, term sheets ...

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Economic drivers, challenges creating regional electronics industry

By Mark Zetter

After contributing to a fact-based electronics industry feasibility analysis managed by IDC on various concerns any nation might likely face, should that nation without a thriving electronics industry want to create one, below I share with readers some excerpts from the final report.

As governments and company executives wanting to create a successful regional electronics industry ask themselves: “What do we need to know?” let’s begin by looking at a typical supply chain world map as it might pertain to a desktop PC. (See Figure 1)

Figure 1

Personal Computing (PC) Supply Chain

(Click to enlarge Figure 1)

The electronics industry has a global value chain encompassing product design; semiconductor fabrication and packaging, components and subsystems, and final product assembly. (See Figure 2)

Figure 2

Electronics Supply Chain World Map

(Click to enlarge Figure 2)

And, for the most part, each of the supply chain components mentioned above can be drilled down further revealing even more detail.

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Electronics industry performance drivers and outlook

To help paint a picture of the economic drivers for performance that contribute to the overall health of the global electronics supply chain, let’s look at four primary base constituents that make-up this global supply chain while noting the importance of understanding that while the four constituents are related, they each still have distinct personalities impacting relative performance.

 

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