Circuits Assembly Online Magazine - Eastern Europe Emerges as an Electronics Hotbed, Says iSuppli

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BUDAPEST – India and China are usually at the top of the list of emerging markets. However, Eastern Europe has become the new contender in the global competition for electronics manufacturing dollars, says iSuppli Corp.

Speaking today at iSuppli’s 2007 European Briefing Series in Budapest, 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 GDP growth of around 5% and an annual increase in electronic consumption slightly less than 10%, it isn’t a surprise that Eastern Europe has become a hotbed of activity for manufacturing and designing everything from 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 CAGR of 10.2% for the period of 2005 through 2010, says iSuppli. This compares to a negative 2.4% CAGR for the rest of Europe during the same period. Sheppard attributes this to higher education in Eastern Europe, demand from customers, and lower production costs than in Western Europe.

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.

The number of companies throwing their hats into the LCD-TV ring in Eastern Europe is substantial. One of the reasons for this is that the barrier to entry in the LCD-TV business is much lower than it used to be, says iSuppli. According to iSuppli’s Television Systems service, the LCD-TV market is set to grow to 4.1 billion euros by 2011, from 1.7 billion euros in 2006, managing a CAGR of 19.5%. Unit volume will reach 7.3 million units by 2011, from 1.8 million in 2006, rising at a CAGR of 31.6%.