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15 November 2011 | Adam Leach
As China and Japan’s dominance in
the high-tech component supply market recedes, companies in the region will
source more from emerging countries such as the Philippines and Vietnam.
That’s the finding of the Changein the supply chain survey, published last week by global logistics
company UPS. It discovered that the number of companies sourcing most
of their supplies from China and Japan – including domestic businesses – would
reduce over the next three to five years, while it will rise in other
Asked what destinations they sourced
most of their supplies from, 66 per cent of respondents identified China and 51
per cent identified Japan. However, when asked to predict the picture in three
to five year’s time, China dropped to 64 per cent and Japan to 46 per cent.
In contrast, the grouping of
mature Asian-Pacific markets (Thailand, Malaysia, Hong Kong and Singapore)
increased from 42 per cent to 50 per cent in the future, Taiwan from 27 per
cent to 31 per cent and the emerging markets of the Philippines and Vietnam
from 16 per cent to 24 per cent.
Carla Huang, director of
marketing for the high tech sector at UPS, said: “Shifts in sourcing strategies
will impact high-tech supply chains throughout the Asia-Pacific region as well
as those in North America, creating long-term implications for the industry on
a global level.”
Yesterday, it was announced that Japanese electronics giant
Hitachi will boost the amount of supplies it sources from Taiwan. The company, which manufacturers a variety
of products including LCD TVs, refrigerators and hard disk drives, has
committed to expanding procurement of flat panel and LED displays and other
products in the country to the value of $2 billion (£1.25 billion).