subject: Global Expansion Of Chinese Oem Semiconductor Spending To Stimulate The Growth - Semiconductors, [print this page] Abstract: As China's domestic market, highly saturated, and the growth rate of China's electronics industry slowdown, the Chinese OEM manufacturers were forced to enter the international market in order to maintain business growth.
As highly saturated domestic market, and the growth rate of China's electronics industry slowdown, the Chinese OEM manufacturers were forced to enter the international market in order to maintain business growth. Worried that China's domestic market has been snatched away too many multinational businesses, the Chinese OEM manufacturers to bring product to market a wider audience, in order to achieve continued expansion, particularly in the communications equipment in 2006 and consumer electronics industry slowdown after .
Fortunately, these Chinese OEM manufacturers of products such as Internet and mobile communication devices, no longer only seen as cheap goods, is now based on the value of its technology to compete. OEM manufacturers in China M & A launched a positive strategy to overcome the barriers to trade. European and North American countries have set up these barriers is to prevent the impact of cheap Chinese products similar domestic products. OEM manufacturers in China are those countries, or direct investment in factories, in order to bypass trade barriers.
Although the near term, these global measures for the Chinese OEM manufacturers for the costly, but ultimately these companies will direct investment in these countries have benefited. For some companies, this strategy has been noticed. For example, wireless and data communications equipment maker Huawei Technologies, in 2006 its revenues have more than 60% from overseas markets. This may be the Chinese semiconductor supplier can follow the example. The company plans to deploy sales resources around the world to expand their business.
Direct customers OEM manufacturers in China are often asked their semiconductor suppliers continue to offer lower prices, sometimes offers about 15% per year. Large Chinese OEM manufacturers requirements to become a direct distributor customers to save more money and continue to expand market share. As the large number of OEM manufacturers a huge consumer of semiconductors, this is a wise decision.
Lenovo is the largest OEM semiconductor consumption vendors, Huawei and ZTE are ranked second and third. However, Huawei's semiconductor consumption grew faster than other OEM manufacturers. The following table shows on the 2005-2008 iSuppli semiconductor consumption in China OEM manufacturers estimate.
2005-2008 OEM manufacturers in China, ranking in the semiconductor spending (millions of U.S. dollars, source: iSuppli)
Temporarily at a low ebb 2006, the focus on LCD TVs and white goods and other consumer applications, OEM manufacturers in China suffered great loss, cross-OEM manufacturers take the opportunity to recapture the past by the domestic manufacturers away market share. However, iSuppli Corporation believes that adjustments in the corporate strategy to promote growth and to enter the international market, these Chinese companies will come back.
OEM manufacturers in China have been a number of financial scandal, so that semiconductor vendors face a higher financial risk. By the impact of these financial scandals in 2006, many Chinese OEM manufacturer bankruptcy, was bought and acquisitions.
ISuppli Corporation believes that the worst is over, by focusing on new ways to create income and reduce risk, the Chinese OEM manufacturers should be able to solve the growing problem.
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