Connectors

China is home to over 1,000 connector manufacturers, currently supplying more than one third of global output.

Production is expanding by 40% a year, driven by increased demand from the consumer electronics, computing and communications industries.

To help you profit from this booming supply market, this report brings you profiles of 208 major connector manufacturers from China's main production hubs.

Plus, you'll receive a comprehensive overview of China's connector supply industry, so you can identify trends and opportunities impacting sourcing decisions over the next 18 months.

What you'll get

Background company information to help you pinpoint OEM/ODM suppliers to major buyers such as Acer, 3M, Molex, FCI, HP, Lucent and Motorola

Deep profiles of 24 leading connector manufacturers with a detailed look at their production facilities, export capacities, QC processes, R&D resources and popular export models. This information is available nowhere else

Short profiles of 40 additional producers featuring key statistics including factory locations, QC and R&D strategies, and export volumes

Concise profile tables of a further 144 suppliers that highlight critical sourcing data such as annual sales, product lines, target industries and export markets

How you'll benefit

Quickly identify the product certifications that each supplier has obtained using an easy-to-compare ticker table

Identify which manufacturers have recently upgraded their production facilities, implemented stricter QC checks and have significantly increased their R&D investment

Obtain a list of suppliers that have adopted a "green" production platform

Profit from quick-to-use summary listings covering all featured manufacturers, with easily comparable statistics, and verified contact details and URLs

Executive summary

Mainland China's connector production output is expected to reach 50 billion units by the end of 2004, up 42.86 percent from 35 billion in 2003. The local connectors industry registered an 18.28 percent growth in export value in 2004 and is expected to increase steadily, by 21.74 percent in 2005 and 20 percent in 2006.

Mainland China supplies about 33 percent of the world's connector demand, according to the China Electronic Components Association (CECA).

The connector industry in the mainland is composed of about 600 key connector manufacturers and some 400 makers running small-scale and family-operated workshops. Most of these connector makers have set up manufacturing bases in the provinces of Guangdong, Zhejiang, Jiangsu and Shanghai.

Mainland China makers offer a wide range of connectors, but the most common types are computer, telecom, A/V, fiber-optic, PCB and RCA connectors, as well as modular jacks, telephone plugs and terminal blocks.

Local connector manufacturers also produce connectors suited to automotive and military applications, with the latter being strongly supported by the government.

This report profiles 208 small-, medium- and large-scale connector manufacturers in the mainland. A significant finding in this report is the manufacturing shift of foreign makers to the mainland. In effect, local makers are fully automating their production processes and upgrading the quality of their products in order to stay globally competitive.

Over the past decade, mainland China has seen an influx of foreign connector makers. There are about 300 connector manufacturers in the mainland which are foreign-owned or foreign-invested. Notably, the biggest connector makers in the mainland in terms of sales revenues are US- and Japan-based.

Eighty percent of the connector manufacturers in the mainland cater largely to international markets, Asia being the largest export destination. A majority of the companies ship 60 percent of their total output. Collectively, the connector makers surveyed in this report shipped some 21 billion connectors in 2003. The companies combined annual sales totaled US$3.1 billion in 2003, with exports accounting for US$1.5 billion.

The majority of the makers are ISO 9001-cerified, while a number have received ISO 14000 approval. Mainland makers are also adopting lead-free and other environment-friendly materials, as well as lead-free soldering techniques. About 60 percent of connector makers have shifted to "green" products, while more makers are planning more environment-friendly production next year.

Industry overview

Mainland China currently supplies about one-third of the world's connectors. By the end of 2004, the mainland's connector output is expected to hit 50 billion units. Despite the rise in raw-material costs by at least 20 percent, production output increased by 40 percent from 2003's 35 billion. Industry-wide, most makers are operating at capacity utilization rates of as high as 70 to 75 percent.

With its main application segments — telecom, computer and consumer electronics — all showing growth, mainland China's connector industry has maintained its strength.

Other studies have characterized 2004 as a good year for the industry. Fleck Research projects that the mainland China market will grow 19.9 percent year-on-year in 2004, outperforming North America, Europe and Japan. Some regions are in fact expected to experience a downtrend. Meanwhile, Bishop & Associates Inc. has even higher expectations of the industry, projecting that the mainland China market will grow the fastest in 2004 with a 26.8 percent year-on-year growth. Further, the local connector industry is forecast to achieve a CAGR of 19.8 percent to 2008, much higher than the industry average of 9 percent.

Industry composition
The mainland's connector industry is composed of 600 manufacturers in mainland China — 500 of whom are exporters. Counting the small-scale family-run workshops, however, there are roughly 1,000 connector makers in the mainland.

Most companies profiled in this report entered the line during the years from 1984 to 1993. While some companies have been in operation for as long as 46 years, about 20 percent are new in the line, having been in the connector business for only four years at most.

Samples of supplier profile

Best Sun Electronic Co. Ltd
With more than 10 years of experience in the connector industry, Best Sun Electronic Co. Ltd is a pioneer in the development, manufacture and marketing of connectors, telephone jacks and switches.

Best Sun's product line includes 5mmø, 3.5mmø and 6.35mmø phone jacks, AC/DC power plugs, RCA and DIN connectors, and switches.

The company has a production capacity of about 20 million units per month. Its capital expenditure has been posted at US$15 million.

OEM services are also provided by the company.

Best Sun exports 10 to 20 percent of its total output to the overseas market. The company's main export destinations include Japan and South Korea.

Expanding its overseas markets in the next few months is Best Sun's current focus. Hong Kong and Shenzhen are the company's designated export ports.

In 2003, the company's total export revenues were pegged at about US$1 million, rising by 30 percent average year-on-year.

Best Sun's annual connector sales totaled US$8 million in 2003, posting an increase of 30 percent year-on-year.

The connectors manufactured by Best Sun are widely applied in various consumer electronics including digital cameras, mobile phones and computers.

Manufacturing Capability
Best Sun has two factories in mainland China — one in Yueqing, Zhejiang, and another in Dongguan, Guangdong.

The first factory has 450 employees, while the second has 360 workers.

Best Sun's workshop in Liaobu in Dongguan focuses on the production of connectors targeted at high-end applications.

Before entering the workshop, one is supposed to put on blue factory shoes.

The first floor houses three warehouses for raw materials, metals and mold materials.

In the mold-engineering department is the SM90 series of plastic-injection molding machines and 16 stamping machines.

On the second floor, there are eight assembly lines manned by 30 workers each.

The main production machines were pneumatic and electronic presses, but there were also various machines that assist in automated production processes.

The second floor also houses the warehouse and reliability lab.

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