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Emerging Markets Dominate Electronics Projects
While U.S. Maintains Semiconductor Dominance
The location of electronics projects is primarily in emerging markets which offer either large domestic markets or a competitive export base for accessing regional markets, says Dr. Henry Loewendahl of PwC Consulting-PLI in Belgium.
"The ideal location offers the combination of both," Loewendahl says. "In Asia, China and Singapore are lead locations. In terms of origin, Asian investors are the major source of projects, especially in terms of capital investment."
The Czech Republic and Hungary lead the way in Europe while Mexico and Brazil dominate Latin America. India is also an emerging location, Loewendahl says, but projects are small so far. In the developed markets, the U.S., U.K., Australia and Canada were the most successful locations, but the size of projects is far smaller than in major developing country locations. In the semiconductor sector, the U.S. dominates development, accounting for nearly 60 percent of projects and 75 percent of capital investment, Lowendahl says.
"Semiconductor projects are concentrated in several advanced economies in Asia and Europe and in the U.S.," Loewendahl says. "In Asia, the advanced manufacturing economies of Singapore, Japan, Taiwan and South Korea are preferred locations, together with China. In Europe, Germany, the U.K. and France are the key locations. In addition, Israel and India are important locations. However, in terms of capital investment, FDI projects in this sector are more concentrated. China, Singapore and Israel account for almost 80 percent of capital invested in FDI projects."
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