Several factors make electronics a leading industry in South East Asia: 1. Possibilities of application – greatly impact the growth of economy and society of one particular country 2. The drop in the prices of important hardware
Electronic industry is divided into two main category: industrial electronics and consumer electronics.
3. Video, Music & Media Players
4. Cell Phones
5. Tablet PCs and Laptops
Risk in Electronics Industry mainly in high obsolescence (limited product life-cycle).
Electronics production in ASEAN is mainly in the field of consumer products and components. The industry underwent considerable growth in 1970s and Singapore, Malaysia, and Philippines had become important production bases.
Main reasons that contribute development of electronic industry in ASEAN, from 1960s to 1980s: 1. Import Substitution
Starting from 1960s to 1980s there were many import bans (protective barriers) for consumers in ASEAN countries. This also includes electronic products such as Televisions (B&W and Color), Audio Stereo and Radio Cassette. Hence, Japanese corporations like Sony and Toshiba started to setup production plants, namely in Singapore and Malaysia in the early history of electronic industry in ASEAN.
2. Competition between Japanese & States manufacturers.
Earlier, due to quality control reasons, American manufacturers such as GoldStar (now bought over by LG) were reluctant to relocate their production plant to Asia. However, due decreasing component cost (especially production of electronic diode and cathode ray – important components for TVs at that time) from ASEAN Countries, they decided to create new plants in ASEAN – as a result, more schools in ASEAN are starting to open basic electronic education (unique opportunity for...