SHANGHAI -- Tyco Electronics is "aggressively" expanding its operations in Shanghai, adding thousands to its workforce while it trims its capacity in the U.S. and Europe.

According to a report today from Deutsche Bank analyst Carter Shoop, Tyco is Electronics hired 4,000 employees in China in fiscal 2005, and plans to add another 6,000 to 7,000 in fiscal 2006. A new engineering center is planned as well.


The company currently employs 26,000 in China.

Demand for communications, computer and consumer electronics appears healthy, and Tyco is believed to be benefiting from gains in demand for handsets and IT hardware, Shoop said in a research note today.
Demand for communications infrastructure gear is soft, Shoop said.

Tyco Electronics generated $2.6 billion in revenues from communications, computer and consumer electronics (CC&E) in 2005, 21.3% of the group's total sales.

During the first half of fiscal 2006, Tyco plans to open a new engineering center in Shanghai, Shoop said, a move DB says is postive. "We believe this investment, in conjunction with the comoditization of consumer electronics (analog to digital) and handsets should result in share gains for Tyco in the CC&E market."

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