The East Asian Electronics Sector: The Roles of Exchange Rates, Technology Transfer, and Global Value Chains

East Asia is the center of electronics manufacturing, with final goods assembled in China and sophisticated parts and components (P&C) in upstream Asian economies such as Japan, South Korea, and Taiwan. Learning and technological advancements have allowed Asian workers to produce cutting-edge products, and there are lessons for countries like the US that seek to reshore manufacturing.

Format: Paperback / softback
Length: 75 pages
Publication date: 23 February 2023
Publisher: Cambridge University Press

East Asia dominates the production of smartphones, computers, televisions, semiconductor devices, and other electronics goods, accounting for a significant portion of the global market. While final electronics goods are assembled in China, sophisticated parts and components (P&C) such as semiconductor chips, image sensors, and ceramic filters are sourced from upstream Asian economies like Japan, South Korea, and Taiwan.

The rise of Asia as the center of electronics manufacturing can be attributed to several factors. Firstly, the region has a large and skilled workforce, with a strong emphasis on education and technical training. Governments in Asian countries have invested heavily in research and development, fostering a culture of innovation and technological advancement. Additionally, Asia's low labor costs and favorable business environments have attracted multinational corporations seeking to outsource manufacturing operations.

Learning plays a crucial role in Asia's success in electronics manufacturing. Asian workers have developed a deep understanding of the industry and have honed their skills through years of experience and continuous learning. This has been facilitated by government initiatives, such as subsidies for research and development and vocational training programs, that have promoted skill development and knowledge exchange.

There are lessons for countries like the US that seek to reshore manufacturing of semiconductors, flat-panel displays, and related products. One key lesson is the importance of investing in education and training to develop a skilled workforce capable of producing cutting-edge products. Governments can also provide incentives and support for research and development to foster a culture of innovation and technological advancement. Additionally, countries can explore partnerships with Asian companies to leverage their expertise and access to the region's supply chain networks.

In conclusion, East Asia's dominance in electronics manufacturing is a result of a combination of factors, including a large and skilled workforce, government investments in research and development, low labor costs, and favorable business environments. Learning plays a crucial role in Asia's success, and countries like the US can learn from the region's experiences to reshore manufacturing and promote technological advancement.

Weight: 149g
ISBN-13: 9781009216814