Powering the Global Electronics Industry
Global giants base electronics operations in Singapore, Thailand and the Philippines to access skills, lower labor rates and establish networks with Japan and China.
Southeast Asia’s reputation as a hub for the global electronics industry continues. It can be seen in the roll-call of top consumer electronics companies from around the world that manufacture in Thailand. This includes top European companies such as Philips and Electrolux; Honeywell and Western Digital from the US; as well as leading Japanese brands Sony, Nikon, Pioneer, Sharp, Hitachi and Toshiba, according to ASEAN (Association of Southeast Asian Nations).
From 20 to 50 per cent electronics exports
ASEAN comprises ten states, including Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Electronics account for 20 to 50 per cent of the total value of exports from most countries in Asia, the body says. Large quantities of consumer electronics, semiconductors and integrated circuits originate in Thailand, and more than 80 per cent of the world’s hard drives are made in the ASEAN region. Seven of the world’s top 20 chipmakers have bases in the Philippines, which has captured 10 per cent of world semiconductor manufacturing and supply.
Why set up shop in SE Asia?
Companies are attracted to producing electronics in the region because of lower labor costs. As companies and countries in the area have moved up the electronics value chain, labor-intensive work has shifted to lower cost parts of the region, such as Vietnam and Indonesia. Ultimately, Myanmar’s economy is expected to provide a competitive base for labor-intensive electronics assembly thanks to its low cost base, says ASEAN. China and Japan benefit from proximity to this marketplace and its integrated electronics production and distribution networks.
Locating in Singapore
Among the Western giants to have developed operations in Singapore are aero engine-maker Rolls-Royce, consumer products firm Unilever, and even Lucasfilm – whose animation and visual effects specialists have been working on the island nation since 2005.
“Singapore’s robust ecosystem, pro-business environment, geopolitical landscape and high-technology infrastructure enables Dell to bring the benefits of technology solutions to our customers in the Asia Pacific and Japan region.”
US electronics firms Dell and IBM also have a long-term presence in Singapore. IBM has operated here since 1953, while Dell, one of the first companies in the world to sell custom-built computers to consumers, has its Asia Pacific headquarters there.Singapore has a pool of more than 141,000 information and communications industry professionals, supported by an established network of component manufacturers and logistics providers. “Singapore’s robust ecosystem, pro-business environment, geopolitical landscape and high-technology infrastructure enables Dell to bring the benefits of technology solutions to our customers in the Asia Pacific and Japan region,” says Amit Midha, president of Dell Asia Pacific and Japan.
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