China Cables & Assemblies Industry

An Expert's View about Major Exports in China

Posted on: 29 Mar 2010

China is consolidating its position as the world’s largest supplier of A/V, computer and telecom cables and assemblies. Expanding production and exports in anticipation of rising demand will boost the country’s global output share, which currently exceeds 70 percent. Heightened R&D spurred by efforts to broaden lineups and applications to match trends for new and upgraded interface standards will also swell overall yield in coming months.


The A/V cables and assembly sector will experience the most robust growth,driven by the widening adoption of HDMI and Display Port. The former dominates mainstream supply and is the top choice in high-end consumer electronics such as flat-panel TVs and digital set-top boxes. Display Port constitutes a smaller segment but is poised to expand as many companies gear up for manufacture on a larger scale. The adoption this November of Apple’s Mini Display Port by the Video Electronics Standards Association augurs well for this line.


Exports from January to August2009 dropped 38 percent from the same period last year at $1.8 billion. But makers remain positive sales will rise asorders rebound beginning 2H09.


The following are some of the key trends in China’s cables and assembly industry:

• Across all product categories,manufacturers are riding on their price advantage to boost overseas business.In the A/V cables and assembly line, for example, local models aregenerally quoted 30 percent less than counter parts from Japan and the US.Although many suppliers raised prices in recent months to invigorate sales,these remain lower than those from international brands.

• Cost-management programs center on boosting production scale and improving operating efficiency. More companies are also exploring local materials. Some makers of HDMI cable assemblies are using copper-coated aluminum and steel wires instead of oxygen-free and mono crystal copper,which are more expensive.

• Product development initiative semphasize the adoption of new standards and upgraded specifications.

• Suppliers are also increasing the data transfer rate while reducing thesignal attenuation and distortion. Manywill enhance the shielding design.

• Companies are keen to expand their markets in the EU. North America andthe Asia-Pacific region are other key export destinations.

• Rising manufacturing costs continue to pose a challenge to China makers. Huge licensing fees and stricter overseas standards exacerbate the situation, especially for smaller enterprises.



The above is extracted from the Executive Summary of China Sourcing Report: Cables & Assemblies


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Posted: 29 March 2010

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