Low labor costs and a fast-growing domestic market will spur China’s consumer electronics manufacturing industry to more than double by 2010, reports In-Stat. The industry will grow from $71.5 B in 2006 to $167 B by 2010, the high-tech market research firm says. China’s mature supply chain, a skilled labor force and convenient logistics are the key factors to attract outsourcing manufacturers from abroad.

“About two-thirds of China’s electronic manufacturing revenue comes solely from foreign-funded or Sino-foreign joint ventures,” says Anty Zheng, In-Stat analyst. “The world’s top ten electronics manufacturers have all invested in China and consider China to be a key region in their global manufacturing facility layout.”

Recent research by In-Stat found the following:

• China-based electronics manufacturing companies contributed about 8 percent of China’s total $425 B electronics manufacturing revenue in 2005.

• Compared to its mature manufacturing environment, China’s R&D ability, especially in chip design and solutions, is still weak: over 90 percent of chips for electronics manufacturing still depend on imports.

• A few Chinese fabless IC companies have set up successful models to win in niche markets like the video/audio chip market in mobile communications and MP3.

The research, “Electronics Manufacturing in China,” covers the market for consumer electronics production in China. It examines China’s current electronics manufacturing industry and development trends, with forecasts on electronics manufacturing revenue by several product categories through 2010. Companies interested in cooperating with Chinese electronics manufacturing companies or fabless companies will find the marketing intelligence necessary to penetrate the country’s electronics manufacturing industry. The report provides valuable references related to electronics manufacturing for any IC companies looking to sell chips in China.

This research is part of In-Stat’s China Semiconductor and Electronics Manufacturing Service. Semiconductor consumption by application for China is at the core of this service and it forecasts semiconductor consumption in crucial segments, including 3G mobile devices and infrastructure, IC cards and consumer electronics devices. Semiconductor consumption for all of Asia is also addressed by country and an additional step toward presenting the whole picture is taken with an assessment of electronics manufacturers in China.

A related In-Stat report, “Semiconductor Manufacturing Capacity by Country in Asia, 2006,” details the semiconductor manufacturing capacity of various countries in Asia, and also looks at the capital spending trends in this industry. A separate section deals with the DRAM manufacturing in Asia.