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May 2007

Vol 8. No. 5


Eastern Europe an Electronics Hotbed

When it comes to emerging markets, India and China usually are at the top of the list. However, Eastern Europe, once concealed behind the so-called Iron Curtain, has become the new contender in the global competition for electronics manufacturing dollars, according to iSuppli Corp.

Speaking at iSuppli’s 2007 European Briefing series in Budapest, Hungary, Greg Sheppard, chief development officer at iSuppli, discussed the outlook for electronics manufacturing in Eastern Europe.

With a population of more than 400 million people, regional Gross Domestic Product (GDP) growth of around 5 percent and an annual increase in electronic consumption by consumers and enterprises slightly less than 10 percent, it isn’t a surprise that Eastern Europe has become a hotbed of activity for manufacturing and designing everything from Liquid Crystal Display Televisions (LCD-TVs), to desktop and notebook PCs, to mobile handsets, to consumer electronics, Sheppard noted.

Eastern Europe’s electronic system production revenue is expected to rise at a Compound Annual Growth Rate (CAGR) of 10.2 percent for the period of 2005 through 2010. This compares to a negative 2.4 percent CAGR for the rest of Europe during the same period.

Why is Eastern Europe growing so quickly? “Eastern Europe benefits from having a labour force that is typically of a higher level of education compared to other developing nations,” Sheppard said. “Add to this demand from consumers and production costs that are far lower than those of Western Europe and the East has become extremely popular in a short time.”

The region also is benefiting from the rise in tax grants and benefits from governments. These governments are striving to increase the GDPs of their countries, Sheppard said. For companies, maintaining an R&D center or manufacturing plant in the Eastern European region means they will generate good will among the local population and possibly even that they can avoid tariffs set in place to discourage products from other countries such as China from being dumped on the market.

One of the areas that has really exploded during the past 18 months has been the LCD-TV market, where numerous companies already are engaged in a fight to win over the hearts and minds of the Eastern European public. The number of companies throwing their hats into the LCD-TV ring in Eastern Europe is substantial.

According to iSuppli’s Television Systems service, the LCD-TV market is set to grow to 4.1 billion euros by 2011, managing a CAGR of 19.5 percent from 1.7 billion euros in 2006. While revenue will be expanding steadily, it is the unit volume that will experience the highest growth, reaching 7.3 million units by 2011, rising at a CAGR of 31.6 percent from 1.8 million in 2006.

Canadian Electronics magazine readers will have the opportunity to learn more about LCDs in the June issue in our feature section on display technology.

Tim Gouldson,
Editor, Canadian Electronics
tgouldson@clbmedia.ca




In the next issue of 
Canadian Electronics

  • Relays & Switches

  • Optoelectronics & LEDs

  • Passive Components

  • Wire & Cable

  • Power Supplies

  • Software Report




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UPCOMING EVENTS

Design Automation Conference (DAC)
June 4-8, San Diego
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Computex Taipei
June 5-9, Taipei
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ElectronicIndia
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WEB WATCH

Electronic, electromechanical: Allied Electronics has launched a virtual catalogue on its Web site. The catalogue was designed to engage online customers that prefer to search for products using the photography-rich print catalogue, but may not have it readily available. Online customers can navigate the virtual catalogue using their mouse to flip through virtual pages and can quickly turn to a specific product section or page number with one click.

X-ray Inspection: Agilent Technologies will showcase its latest X-ray inspection innovation live via satellite. Attend via the internet from the comfort of your desk, or join your peers at one of two events hosted at Agilent’s offices in Santa Clara, Calif. and Andover, Mass. At these two locations, you can network with Agilent experts at a seminar style event covering several hot technical topics.
www.agilent.com/find/x6000launch

Wireless: Texas Instruments Inc. has announced the release of its ZigBee stack, Z-Stack, for free download at www.ti.com/zigbee. Z-Stack has been awarded the ZigBee Alliance golden unit status by the ZigBee test house TÜV Rheinland and is used by thousands of ZigBee developers worldwide. Z-Stack is compliant with the ZigBee 2006 specification and supports multiple platforms including the CC2430 System-on-Chip solution for IEEE 802.15.4/ZigBee and a new platform based on the CC2420 transceiver and TI’s MSP430 ultra-low-power microcontrollers (MCUs).

Displays: CAO Group announces a data sheet for its comprehensive line of numeric, alpha-numeric and dot matrix displays, available at www.caogroup.com/Products/NDs.pdf. The full range of standard product, covering 40 skus, includes 18 sizes of single, dual, three and four digit NDs, plus 3 alpha-numeric sizes and 19 dot matrix displays. Sizes range from .28'' to 5'' with typical wavelengths from 466 to 643 mm. Emitting colours are HE red, red, orange, yellow, ygreen, and blue (ND).





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