SANTA ANA, Calif. - China has become the second largest production country in the world, second only to the United States, according to research performed by Fleck Research. The connector and cable assembly production inside China is as great as Germany, France and the United Kingdom combined. The total production of connectors, cable assemblies and backplanes inside China is difficult to determine because there are a thousand or more local Chinese manufacturers and there is no agency within China that reports production numbers.
The Taiwanese companies manufacturing in China will record $1.8 billion (U.S.) of production for connectors, cable assemblies and backplanes in 1999. Foreign manufacturers with factories in China, including America, Japanese and European companies, are projected to produce $875 million in China in 1999. Nearly all these products are exported. Private-label production is still increasing within China and is estimated at between $300 and $400 million in 1999; all private label is also exported.
There is $100 billion of production in China of electronic systems and equipment. To support this electronic production would require $1.4 billion of connectors, $1.8 billion of cable assemblies and $0.2 billion of backplanes. This total of $3.4 billion is either imported into China or locally produced by Chinese manufacturers. It is this $3.4 billion where differences of opinion among industry experts arise.
The Fleck forecast of $3.4 billion is based on the $100 billion of electronic systems and equipment produced inside China. To support the production level would require connectors, cable assemblies and backplanes installed within this electronic equipment amounting to $3.4 billion.
So how much total production of connectors, cable assemblies and backplanes takes place in mainland China? The forecast is $3.6 billion. This is arrived at by the $1.8 billion of Taiwanese production in China, $0.9 billion of foreign companies (American, Japanese and European), the $0.4 billion of private label and the $3.4 billion to support electronic production. There is an elimination of $0.2 billion from their companies that is the products, which remain inside China as a part of the $3.4 billion.
The top five foreign manufacturers (American, Japanese and European) within China are AMP Incorporated, Molex Inc., Hosiden, Amphenol and FCI. In 1999, these top five will record $580 million, or nine percent of the total production in China.
The top five Taiwanese companies manufacturing in China are Hon Hai, Pan International, Unixtar, Bizlink and Join Soon. These five will record $1.1 billion of production inside China or 18 percent of the total.
