Electronic Components

Suppliers of external and embedded AC/DC adapters in China are confident of the forecast growth for the line. This is encouraging makers to boost R&D efforts even as post crisis demand is still weak. They see the fast-rising LED lighting industry as an opportunity to develop the embedded segment, while sustaining further advancement in the consumer electronics-driven external category.

Rising demand for high-resolution displays in consumer electronics and laptops and the localization of panel production are speeding up the shift to TFT technology in China's LCD module industry. Output of the dominant TN and STN variants has declined steadily in recent years, while that of TFT has climbed by more than 20 percent annually. The latter configuration is expected to drive this line, with its manufacturing allocation forecast to top 70 percent in 2010-11.

With the global computer processor industry dominated by foreign companies such as Intel, AMD and Nvidia, most Taiwan suppliers have taken on the role of distributors for large CPU/GPU makers. In fact, only one major local manufacturer, Via Technologies Inc., and a handful of small operations, including IC Nexus Co. Ltd, are actively involved in the line.

The portability trend permeating the global A/V equipment, computer and telecom industries is shaping China's electronic components sector. Makers there are developing products that can support multiple functions and features, and yet fit into smaller and lightweight form factors to match today's handheld devices.

Suppliers of raw speakers in China are confident of invigorated production this year that will surpass 2009's economic crunch-impeded growth of 10 percent. As foreign companies continue populating the domestic automotive and LCD TV sectors, more opportunities are expected to open up for the industry's more than 1,000 members. Further, this will pave the way for new entrants. The anticipated global recovery from the crisis also bodes well for exports.

China suppliers of HDMI connectors and cable assemblies are stepping up to HDMI 1.3 in anticipation of a rise in the number of devices supporting this standard. The switch, which is also in line with efforts to broaden product and application ranges, is expected to boost this type's output share in coming months. The variant currently accounts for 30 percent of China's total yield of HDMI connectors and cable assemblies as opposed to the 50 percent allocation of 1.1 and 1.2 models.

China's solar cell and panel industry is facing oversupply amid weakening demand and excess capacity. Orders started to drop in 2Q08 in the aftermath of the economic recession, especially when governments around the world reduced subsidies for infrastructure using sun-generated energy.

The trend for energy-saving and environment-friendly products is driving China's DIP LED industry. Makers are confident adoption of this type of encapsulation will gather steam as more countries switch from traditional light sources to cost-efficient alternatives. Although orders dipped in early 2009 due to cancelations, the majority projects overall sales will remain robust, if not rise at least 20 percent by year-end.

Spurred by rebounding sales in the A/V electronics sector, China suppliers of RCA cable assemblies are ramping up production and exports. Makers project turnout will rise 5 percent by year-end, and an additional 5 to 10 percent in 2010. To achieve this, they are pushing up capacity utilization by 10 to 20 percent in coming months. As for overseas shipments, many are optimistic of a 5 to 10 percent increase this year after a notable drop in 2008 due to the economic slowdown.