By 2008, over 60 percent of the multimedia connectors from Asia will come from Greater China manufacturers — easily capturing 35 percent of the world market. The multimedia connectors industry is growing at an accelerated pace with the continued release of next generation PCs and peripherals, TV receivers, home theater systems and other A/V equipment, especially the booming media player sector.
Aggregate production in mainland China, Taiwan and Hong Kong will reach 13.61 billion units in 2006. The overall shipment volume, on the other hand, is expected to total 2 billion in the same period.
Industry Composition
• Most of the mainland China multimedia connector makers manufacture products for the low-end and midrange markets.
• Taiwan makers are focusing on higher-end, value-added units.
• The small segment in Hong Kong, on the other hand, turns out mostly midrange products.
• The Greater China multimedia connector industry is composed of about 700 manufacturers — 400 are Taiwan-owned and 300 mainland China-owned.
• Guangdong, which hosts about two-thirds of the companies, is the leading manufacturing hub for multimedia connectors.
Product Scope
• Mainland China is one of the biggest production hubs for USB connectors. USB connectors also represent the bulk of connector production in Taiwan.
• RCA and A/V connectors are produced mostly by mainland China and Hong Kong-owned companies.
• A large percentage of power connectors in Greater China are produced by mainland companies; Hong Kong companies, on the other hand, specialize in power connectors for portable electronics.
• HDMI, DVI and RF connectors are the domain of most Taiwan companies; many mainland China companies also produce lower-end versions of these products.
• IC card/memory card connectors are manufactured by mainland China and Taiwan companies, but Taiwan makers concentrate more on value-added products.
Product Development
• Faster data transfer rates, smaller size and pin pitch, improved anti-shock and vibration and higher frequency are among the current R&D trends.
• The product development thrust of most companies is on high-end products such as HDMI, USB, IEEE1394 and IC card/memory card connectors, particularly mini USB and HDMI connectors.
Industry Overview
The multimedia connectors industry is growing at an accelerated pace with the continued release of next generation PCs and peripherals, TV receivers, home theater systems and other A/V equipment, especially the booming media player sector.
Greater China supplies more than one-third of the world's connectors including multimedia connectors. Nearly 40 billion units of connectors will be produced in the region by 2006.
Spurred by steady growth in the overall telecom, IT and consumer electronics sectors in the past years, the worldwide connector market reached US$485.7 million in 2005. Production capacity expansions, the increasing number of connector makers diversifying into multimedia connector production and the sustained incursion of foreign companies into Greater China is expected to sustain the industry for years to come.
This report covers manufacturing and export capabilities, as well as product development trends in the IEEE 1394, HDMI, USB, IC-card/memory-card, RCA, DVI, RF and power connectors product lines. The manufacturers in this report represent a cross-section of the supplier base in mainland China, Taiwan and Hong Kong — the majority of which are actively exporting no less than 20 percent of their output and serving internationally known brands, including Sony, Bosch, Panasonic, Acer, Samsung, LG, Philips, ASUS, Omron, NEC and Motorola.
Of the total connector production in mainland China, Taiwan and Hong Kong, 13.61 billion units, or about 34 percent, are multimedia connectors produced by manufacturers covered in this report. At least 5 billion multimedia connector units are produced by mainland China-owned companies; the rest are Taiwan- or Hong Kong-owned, or foreign-invested companies with manufacturing bases in Greater China.
The overall shipment volume of multimedia connectors produced by Greater China makers is projected to reach an estimated 2 billion units in 2006.
Supplier Profile
Changzhou Chenguang Electronic Components Co. Ltd
Founded in 1985, Changzhou Chenguang Electronic Components Co. Ltd specializes in the manufacture of RCA connectors and cable assemblies, DVI cable assemblies, USB cables, SCART cable assemblies, RJ45 cable assemblies and HDMI cable assemblies, which are widely used in A/V equipment, PC and peripherals, and telephones. Major customers include Sinco Electronics and Samsung.
In 2005, sales revenues reached US$4 million, and the company plans to maintain this sales level in 2006. Eighty percent of production is shipped overseas, of which 70 percent goes to Europe, 20 percent to Southeast Asia and 10 percent to the Middle East. All exports are absorbed by OEM and ODM clients. The company offers direct export and after sales service. Shipment is expected to rise by 10 percent in 2006 and 2007 as demand in the global market rises.
Although the cost of raw materials continues to increase, particularly that of copper, the company has no plans to raise its price as it takes into consideration fierce competition in the line. The company says its price for multimedia connectors and cable assemblies may even drop slightly in 2006 and 2007.
Manufacturing Capability
Chenguang has a monthly capacity of 500,000 units for multimedia connectors. Mass production for HDMI connectors and cable assemblies are scheduled to begin in 2006 at a monthly capacity of 2,000 units.
The Global Sources team was given the permission to tour the company's 5,000-square-meter headquarters and facilities in Wujin, Changzhou, which is about a half-hour drive from the city center.
About 150 workers man the six production lines. Since the company has reached full utilization, some production processes are outsourced to other factories. For instance, one-fifth of total RCA connector output is outsourced.
All this column of information contained in China Sourcing Reports is the result of original, independent and impartial research conducted by Global Sources analysts.
If you'd like to order the China Sourcing Reports, please go to Global Sources website - http://www.globalsources.com, or click here. It is simply and convenient.