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Electronics firms sourcing locally as supply chain improves

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Updated: 2007-06-22 16:02

Chinese electronics manufacturers are choosing to source from distributors on the Chinese mainland, reflecting improvements in the country's supply chain, according to a survey by Global Sources.

In a statement, Global Sources said China's electronics supply chain has matured significantly in recent years, with 46 percent of survey respondents saying they prefer to source from mainland distributors.

"Mainland China-based manufacturers are...increasingly confident local distributors can deliver the products and services they have come to expect from international players," said Mark Saunderson, the publisher of the survey.

The responses from 1,028 electronics company managers showed 29 percent still prefer to source components from international distributors.

The statement added that the manufacturers expect to increase their annual component purchases to an average of US$42 million in 2007, up 40 percent from 2006.

Citing Technology Forecasters Inc, the statement said Chinese mainland accounted for US$551 billion in electronics sales last year, with the figure expected to rise to US$674 billion this year.


(For more biz stories, please visit Industry Updates)


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