Acoustic Components Mainland China and Taiwan account for 60% of the world's supply of acoustic components. Their market share is set to increase as suppliers boost production and new players appear.
Now you can take advantage of new sourcing opportunities resulting from these trends, with supplier profiles — available nowhere else — of 97 leading manufacturers.
You'll also get a comprehensive overview of the industry in mainland China and Taiwan, focusing on manufacturing capabilities, R&D plans and output projections for 2005.
This invaluable information will help you benefit from the many developments impacting your acoustic component sourcing in the next 12 months. What you'll get
Pre-qualify manufacturers that supply to major buyers such as Bosch, Canon, Kenwood, Motorola, Panasonic, Samsung, Siemens and Toshiba
Get detailed profiles of 21 leading suppliers that highlight production capacities, export strategies, QC procedures and expansion plans. Based on personal factory visits and exhaustive interviews with senior managers, this information is available nowhere else.
Benchmark 76 additional suppliers using concise profile tables that highlight key sourcing data such as product lines, export capabilities, technology partners and product certifications
Get a Product Gallery of 63 best-selling export models — from microphone units to raw speakers — with detailed specifications and full-color pictures
This report covers: buzzers, raw speakers, microphones and telephones
How you'll benefit
Learn the results of Global Sources' latest supplier survey, summarizing price, product and other critical projections for the next 12 months
Find out how the adoption of "green" manufacturing processes may impact future FOB prices of your orders
Discover which manufacturers are capable of automatic production processes, and understand how they affect final product quality
Get quick-to-use summary listings covering all featured suppliers, with easily comparable statistics, plus verified contact details and website addresses
Executive summary
Mainland China and Taiwan makers account for 60 percent of the world's supply of acoustic components, according to the China Electroacoustic Component Trade Association (CECTA).
There are 3,000 acoustic component manufacturers in mainland China. The number is forecast to reach 3,100 at the end of 2005.
A significant 30 to 40 percent of mainland China makers are foreign-owned or foreign-invested. After investments surged between 1994 and 2000, the provinces of Zhejiang, Jiangsu and Guangdong emerged as the largest production hubs for acoustic components in mainland China.
In Taiwan, makers number about 70. More than 90 percent of its acoustic component makers have shifted their production to mainland China. They are mostly based in Guangdong and Jiangsu.
As far as production is concerned, among the findings of this report are:
In 2003, mainland China manufactured over 4 billion units of acoustic components. Unit production is expected to grow by 20 percent in 2005. It is forecast to sustain an 8 percent annual growth beginning 2006. By 2010, output is estimated to reach almost 7 billion units.
Total sales revenue of mainland China makers is expected to register a 10 percent annual growth rate, reaching Rmb 47.5 billion (US$5.74 billion) in 2010.
With a 30 percent annual growth rate expected in 2005, most Taiwan makers intend to ramp up production in their mainland China factories. The increased production is meant to create room for price reductions.
Foreign-invested companies in mainland China dominate the worldwide high-end market while mainland China companies dominate the low-end and midrange markets.
In exports, some of the key points include:
Eighty percent of the acoustic component makers in mainland China and Taiwan cater to the export market.
Main export destinations of Taiwan and mainland China-made acoustic components are the US, Europe, South Korea and Japan. Makers count among their clients Motorola, Siemens, Bosch, Samsung, Kenwood, Toshiba, Panasonic and Canon.
In 2003, mainland China exported about 3 billion units of acoustic components, while Taiwan shipped 121.3 million units worth some US$7.9 billion in 2004.
Mainland China is expected to sustain an 8 percent annual export growth rate over the next five years. By 2010, export shipments are estimated to reach 5.2 billion units.
For the companies included in this report, highlights include:
About 90 percent of the profiled makers provide OEM services.
Almost 60 percent have 90 to 100 percent capacity utilization rates.
A number is augmenting existing factories or moving to larger facilities to increase production.
Factory sizes range from 2,000 square meters to 210,000 square meters. Workforce is at least 250 to as many as 23,000.
Industry overview
Mainland China accounts for 40 percent of the world's supply of acoustic components, making it the largest acoustic components manufacturer in the world. In 2003, it produced 4 billion units valued at some Rmb24 billion (US$2.9 billion at Rmb8.28:US$1).
In Taiwan, the acoustic component sector accounts for less than 3 percent of its total electronic components industry. Taiwan makers, including their mainland China operations, produce about 20 percent of the world's supply of acoustic components. In 2004, Taiwan-based makers alone manufactured 141.8 million units of acoustic components. Mainland China and Taiwan combine for 60 percent of the world's acoustic components based on production value.
Industry composition
The acoustic component segments in mainland China and Taiwan saw a surge of new entrants from 1994 to 2000. At least 60 percent of the surveyed mainland China-based makers entered the line within the past 10 years. About one-fourth of the companies have 11 to 20 years manufacturing experience.
There are 3,000 acoustic component manufacturers in mainland China, up 3 percent from 2003. About 30 to 40 percent of mainland China's acoustic component makers are foreign-owned or foreign-invested. At the end of 2005, the number of makers is forecast to reach 3,100.
Zhejiang, Jiangsu and Guangdong are the largest production hubs for acoustic components in mainland China. Eighty-six percent of the factories of the makers included in this report are located in these three key provinces. Makers are drawn to these provinces by the presence of a number of large suppliers of raw materials and some of the biggest IT and consumer electronics companies.
There are about 70 acoustic component manufacturers in Taiwan, 80 percent of which are local enterprises. Most of the acoustic component makers in Taiwan are headquartered in Taipei and the northern parts of the island.
Almost 90 percent of the profiled companies in mainland China are private and local enterprises. Some 7 percent are government-run, and 13 percent are foreign-invested companies. All the Taiwan-based makers included in this report are private enterprises.
Increased production
Although prices of acoustic components have increased by an average of 74 cents in 2003, following an average 60 cents hike in 2000, companies are expected to lower their prices gradually over the next few years. However, price declines are expected to be no more than 10 percent per year because of the continued increase in raw-material costs.
Makers have also been increasing production capacities to make room for price cuts. Almost 60 percent of the companies included in this report are running at 90 percent to full capacity; 24 percent are running at 85 to 89 percent of their capacity.
With a forecast 30 percent annual growth rate for the acoustic components sector in 2005, most Taiwan makers intend to boost capacity in their mainland China factories.
Many companies are also upgrading their manufacturing facilities and streamlining production. Makers are bringing in more skilled workers and investing more on automatic production equipment to reduce manpower and elevate the quality of their products.
Samples of supplier profile
Beijing 797 Audio Co. Ltd
Beijing 797 Audio Co. Ltd was established in 1999 by Beijing 797 Fty, which was founded in 1954.
The company specializes in speakers and microphones, including electret condenser microphone (ECM) capsules, pure condenser microphone capsules and measuring microphone capsules; and tweeters and speakers for TVs and car audio products.
The company can produce up to 14 million microphones and speakers every month, but presently, it is operating at 65 percent to 70 percent utilization rate. In 2005, capacity is expected to go up by 15 percent to 20 percent.
More than 60 percent of its total output comprises microphones. The types of microphones the company produces include diaphragm microphones and ECM capsules.
Main applications of its products include recording equipment, mobile phones, digital cameras, TV receivers and car audio products.
By the end of 2004, the company anticipates its total sales revenues to reach about US$12 million. The company is targeting US$14 million in 2005.
Seventy percent of the company's production output is for export to the US, Japan, Germany and the UK. The US and Europe absorb more than 60 percent of the shipments. Beijing 797 plans to expand its export market to include Africa.
Manufacturing capability
The company began moving its production facilities to its new factory in Miyun town in Beijing in October 2004. Construction of the factory cost more than US$2.4 million.
The plant has a total factory space of 20,000 square meters and employs 600 workers. The company intends to invest US$500,000 in automatic equipment in 2004.
The Global Sources team visited the factory and observed some of the production processes.
At our first stop, we saw various dip components being welded onto PCBs manually. We were told that about 80 percent of products undergo this process.
The PCB parameters, such as input and output distortion and charge voltage, are checked using testing equipment that the company developed in-house.
After this process, capsules are attached to the PCBs, which are then subjected to a running test that lasts for about eight hours.
The next step involves noise testing. The 2608 testing system from Denmark is used to monitor the products' noise parameters, which include linear noise and A/V noise. The crusts are then assembled and the frequency response tested using the DASS system.
The final step involves visual inspection, cleaning and packing before the products are stocked. Prior to delivery, products are subjected to a sampling test.
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