Electronics manufacturing in China
This blog introduces a large domestic market prospect and a low-cost manufacturing environment, and the torch for manufacturing has been delivered to China.
Although the electronics industry is experiencing a worldwide recession, China, as a bright spot in electronics manufacturing, is promising. China's accession to the WTO is foreseeable. Many industrial observers expect that there will be an unprecedented investment boom in China in the future, and the economy still shows growth, especially the Chinese government's investment in IC chips and storage chips of 300 billion yuan in 2025. The national plan has a major breakthrough.
The cut in export demand has slowed China's industrial production for the fourth consecutive month - statistics show that industrial value-added industrial production increased by 10.1% in June from the previous year. . Although exports are slowing and growth prospects remain optimistic, many companies are accelerating investment in electronics manufacturing facilities. Many companies around the world are optimistic about potential domestic big markets and low-cost manufacturing. They are building new facilities in China or increasing investment in existing plants.
Electronics manufacturing is concentrated in Shanghai, Beijing, Shenzhen and Xi'an/Chengdu. There are also activities in Tianjin, Chongqing and Wuhan. There are 342 science and technology parks in China.
Manufacturing infrastructure continues to grow
Historically, China has had limited production of semiconductor products, but new wafer fabrication facilities are still under construction. The joint venture manufacturing plant between NEC and Shanghai Huahong was completed in 2010 to produce memory and logic components. Boeing has announced the construction of a new $1.9 billion wafer fabrication facility in Tianjin, which is scheduled for full production in 2012. The plant's semiconductor products will be aimed at the mobile phone market. Semiconductor Manufacturing International (SMIC), funded by investors from Hong Kong, Singapore, Taiwan and the United States, will be located in an 86-hectare park in Shanghai's Pudong Industrial Park, investing $1 billion in a CMOS semiconductor manufacturing facility. The factory's products include random access memory (SRAM) and digital signal processors (DSPs). Production will begin with a 200-mm wafer. The number of semiconductor production lines in Shanghai is expected to reach 15 in 2005 and 30 in 2010.
In China, there has been a lack of assembly capabilities for advanced integrated circuit (IC) packages, but Advanced Semiconductor Products (ASE), Amkor Technologies, and ChipPAC are building IC package assembly operations in Shanghai. Intel has a large assembly plant in Shanghai for non-central processing (CPU) products. Early assembly facilities did not feature the most advanced semiconductor packages, but most companies plan to add advanced packaging and assembly capabilities to future expansions.
Hong Kong is known for its printed circuit board (PCB) companies such as Elec & Eltek and Wong's Circuits. Taiwan's PCB manufacturers, such as Compaq, NanYa, Unitech, World Wiser Electronics and Wus, also have factories in China. Viasystems, a multinational PCB manufacturing company, also has a factory in China4. IBM's expansion is through a joint venture with Great Wall. Multek in Guangdong Province already has advanced PCB production ranging from microvia boards for mobile phones to backplanes for high-end communication systems. The European-based AT&S company has an expansion plan to produce micro-bypass plates for mobile phones in China.
Contract PCB assembly operations have been established with investments from Hong Kong, Japan, Taiwan, North America and Europe. The assembly that these companies are transferring is more than just games and toys. Founded in 1975, Nantai Electronics has moved from major calculator assemblies to products such as handheld computers, personal digital assistants (PDAs), electronic organizers and dictionaries, language translators, spell calibrators, IC readers and cordless phones. Assembly. Nantai is also a major supplier of glass display module chips.
Flextronic and Solectron have built many PCB assembly plants throughout China to assemble advanced packages such as BGA and CSP. Sanmina purchased Ocean's PCB assembly operation in Shenzhen and also has a factory in Shanghai. Major hard drive assembly companies offer advanced assembly of more than flip chip on hard drives. For example, SAE Magnetics, recently acquired by TDK Japan, also provides assembly services for complex optoelectronic components.
Contract PCB assembly operations include companies growing in the country, as well as international electronics giants. In addition, many multinational companies have established manufacturing bases in China. In the Pearl River Delta, between the bananas and the sugar cane fields, there are more and more foreign companies. Nokia will build another factory in Beijing's Xingwang International Industrial Park. This park is also a location for the IBM China/Great Wall Shenzhen PCB factory.
Compaq, Del, HP and IBM all have PC assembly plants in the region. Almost every major Taiwanese manufacturer has a factory in China - the trend continues. Major Japanese electronics manufacturers such as Matsushita Electric and Panasonic have large manufacturing operations in China. The number of domestic companies, or companies that invest in businesses is increasing.