Mainland China's satellite receiver industry is entering a pivotal phase this year, as it expands production and market reach to further engage the international market. With total exports for 2003 exceeding 5 million units, mainland China accounted for 12 percent to 14 percent of the worldwide market of 35 million to 40 million satellite receivers last year. The country's overall production during the same period reached more than 6 million units.
This year, mainland China makers are blueprinting an increase of 83 percent in production volume and 100 percent in exports. This will translate to 11 million satellite receivers, about 10 million of which will be for shipping overseas. At this export volume, mainland China will take up 22 percent of the forecast worldwide shipment of 45 million satellite receivers.
Currently, the mainland has 50 manufacturers of satellite receivers, most of which are export-oriented companies shipping 50 percent to 90 percent of their output. Production is mainly carried out in Guangdong and Fujian provinces, although some largevolume manufacturing is also done in Sichuan, Wuhan and Jiangsu provinces. Shenzhen is the center of activity and home to seven of the companies profiled in this report.
Meanwhile, Taiwan's satellite receiver market had a rather lackluster performance over recent years. Being largely dependent on OEM and ODM, makers had limited room for product development. Despite this drawback, however, supply has remained strong and will continue to so in the coming months.
The satellite receivers covered in this report are mostly digital Free-to-Air (FTA) models supporting 4,000 channels, Electronic Program Guide (EPG), DiSEqC 1.0 or 1.2 and auto conversion between PAL and NTSC. The dominant type will continue to be FTA receivers, but there will also be a rising supply of CA and CI receivers, as well as FTA+CI and FTA+CA versions.
Next-generation satellite receivers will integrate DVD player and personal video recorder (PVR) functionality. DVB-S2-compliant units may not be available for mass-production by the end of 2004, but makers certainly are looking to develop such products in the near term.
Industry Overview
Mainland China's satellite receiver market is entering an expansion phase this year. In step with the growing worldwide satellite TV market, the country's makers are projecting significant uptakes in both production and export volumes during 2004.
Mainland China accounted for 12 percent to 14 percent of the worldwide market for satellite receivers, shipping more than 5 million units during 2003. The total output for the year was 6 million satellite receivers.
Production and export volumes are forecast to grow by over 83 percent and 100 percent, respectively, in the coming months. By the end of 2004, the mainland will have produced about 11 million satellite receivers, and exported over 10 million of these units worldwide.
The satellite receiver industry in mainland China started in the late 1990s with only five suppliers. The key production centers spread over several provinces located in the southeastern and eastern central parts of the mainland. The two major manufacturing hubs are Guangdong and Fujian provinces. There are also makers scattered in Jiangsu and Hubei, as well as in the south-central part of the mainland, in Sichuan province.
In Guangdong province, the bulk of manufacturing is done in Shenzhen. The city's established infrastructure for component sourcing, subassembly and transport have made it a prime location for the manufacture and export of satellite receivers. Many of the leading companies in this field are located in Shenzhen.
The city serves as base to seven of the 15 companies surveyed for this report. These are Shenzhen Coship Electronics, Shenzhen Jiuzhou Information Technology, Shenzhen Maiwei Cable TV Equipment, Shenzhen Richtec Industry, Gospell Digital Technology, Shenzhen Skyworth Digital Technology and Shenzhen Success Digital Technology.
Four companies are located in Fujian. These are Fujian Baotong Electronics, Quanzhou Licheng Feijie Radio, Fujian Shenzhou Electronic and Quanzhou TDX Electronics.
The leading exporter among the profiled companies during 2003, Sichuan Changhong Electronics/ Network is located outside of the two key manufacturing centers. Chengdu Qianfeng Digital AV Equipment Co. Ltd is likewise based in Sichuan.
One company, Wuhan Changjiang Electro-Communication Equipment, is based in Wuhan, Hubei province. Another, Jiangsu Yinhe Electronics, has its headquarters and factory in Zhangjiagang, Jiangsu province.
Supplier Profile
Chaintech Computer Co. Ltd
Chaintech Computer Co. Ltd, established in 1986, made a name in Taiwan's communications telecom market as a manufacturer of computer motherboards and graphics cards. In November 2001, the company purchased a 16-year-old firm specializing in the manufacture of analog satellite receivers after careful market study and foreseeing the exponential growth in hardware sales in the digital video broadcasting industry. The company, Benjamin Electronic Corp., has allowed Chaintech to produce satellite receivers and related products under the BEC brand name.
Today, Chaintech offers DVB-based satellite receivers, as well as DVB-C and DVB-T models. Receivers are made in set-top box form factor. The company also supplies DVB-compatible PCI tuner cards.
Almost 100 percent of Chaintech's business comes from exports. Ten percent of its US$130 million annual sales come from DVB products. Major customers include the US-based Wegener Communications, although the Middle East and Europe took up the majority of export markets in 2003.
Chaintech expects strong growth in the Asian market this year. As of this writing, the company is in negotiations with Jade Bird Huagugang, one of the largest cable service providers in mainland China, accounting for 40 percent of the country's cable service subscribers.
Satellite receivers made up roughly 7 percent of the company's total sales of US$130 million during 2003. The total export volume reached 96,000 units, 100 percent of the year's output.
Chaintech's headquarters are based in Taiwan, but the company has factories in both Taiwan and mainland China. The Taiwan factory produces high-end products, rush orders and pilot runs. The mainland factory is responsible for mass-producing price-sensitive products. The former measures 25,000 square meters and has more than 1,000 employees. The factory in Guangdong province, mainland China has an area of 33,600 square meters. Both factories have assembly lines, dual inline package lines and SMT lines.
The combined monthly capacity of the two factories for satellite receivers is 40,000 units. This is expected to rise with the opening of a new factory beside the Guangdong plant.
All this column of information contained in China Sourcing Reports is the result of original, independent and impartial research conducted by Global Sources analysts.
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