The province accounts for more than 80 percent of tablet PC shipments worldwide.
Guangdong province’s strong electronics supply chain continues to spawn industries despite rising labor costs. The latest addition is tablet PCs, with more than 90 percent of the line’s 400-plus makers in China congregating in the coastal hub. Overall, the area’s production represents over 80 percent of global supply for the line.
The manufacturing pool includes OEMs and companies promoting own brands. Most are from the computer and portable electronics sectors who leverage technical expertise and existing facilities to grow the category.
Suppliers have a monthly production capacity ranging from fewer than 1,000 tablet PCs for small operations to over 1 million for large counterparts. Foxconn’s Shenzhen factory, which accounts for 80 percent of manufacturing capacity for the iPad, is part of the network.
The key advantage of operating in Guangdong is access to abundant R&D resources, raw materials and components, and support services. The first covers skilled manpower, which includes software engineers, circuit designers and solution providers. For small and midsize businesses, this pool provides technical backup without the inhibitive cost of an in-house team, enabling them to focus on manufacture.
Even major players are tapping this product development network. Samsung, for instance, set up four R&D centers, which concentrate on communication and digital technologies. The strategy also allows the company to work closer with local manufacturers.
In terms of components, the options are numerous. For main inputs such as processors, tablet computer makers can count on the subsidiaries or branch offices of international companies there. TI, Telechips and Rockchip are among them. ICs are also widely available in Guangdong. For the panels, aside from Samsung, LG Display has set up operations in the area, while touch controller vendors Atmel and Synaptics have representative agencies.
The input sector likewise includes hundreds of domestic enterprises specializing in power supplies, cables and connectors. There are many businesses offering accessories such as earphones, and packaging design.
The hub likewise plays host to factories offering front-end services covering circuit design, PCB layout and production, SMT, soldering, mold making, plastic injection and metal processing.
In addition to this established manufacturing chain, Guangdong has the infrastructure to support trade activities. Its modern transportation system comprises sea and airports, railways and highways. Having the longest coastline in China, the province owns 109 ports, including 36 sea, 73 river and 202 10,000-ton berths. Those in Guangzhou, Shenzhen, Zhanjiang, Zhuhai and Shantou are among the key ones.
By land, there is the Jingjiu line, which is the main artery connecting north and south China. It links Beijing and Kowloon, crossing Guangdong’s Guangzhou. The line’s networkof highways exceeds 178,000km.
Seven locations, meanwhile, provide air transport facilities. These are Shantou, Guangzhou, Zhanjiang, Meixian, Chaoshan, Shenzhen and Zhuhai. The Guangzhou Baiyun International Airport handles the flight volume of more than 50 international and 100 domestic airlines. Its annual capacity is 100 million passengers and 2.5 million tons of cargo. The Shenzhen Bao’an International Airport has 18.9 million people and 560,000 tons per year.
Guangdong’s proximity to international gateway Hong Kong also adds to its attractions. Besides global trading, the strategic location offers access to information and trends.
Drawing on these advantages, the province continues to strengthen its export-driven economy. In 3Q11, overseas transactions hit $391.9 billion, surging 22 percent YoY.
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