Information Technology Equipment Industry

An Expert's View about DVD, Hard Drives and CD Manufacture in Hong Kong SAR

Last updated: 13 Sep 2011

Overview •Hong Kong exports a wide range of IT equipment, with computer parts and accessories being the largest export item. According to the latest available statistics, Hong Kong was the second largest world exporter of computer parts and accessories in value terms.


•Hong Kong’s exports of IT equipment grew robustly by 25% in the first half of 2011. Exports to the Chinese mainland, mainly parts and accessories, increased strongly amid the robust input demand stemming from expansion in outward processing production. Sales to the EU and the US also grew by double digits in the period.


•Small and mobile devices with wireless connectivity, in particular the tablet computers, are well received in the market. Meanwhile, industry players are in the pipeline to promote their 3D computer devices. Also, the industry is in the process to launch computer products with interfaces of faster communication speed or higher data transfer rate, especially those in USB 3.0 specification.

Industry Features
Hong Kong exports a wide range of information technology (IT) products, especially computer parts and accessories like motherboards, keyboards, computer cases, power supplies, display cards, memory cards, LAN cards and cables and harnesses. Also, a number of companies are engaged in the trading and/or manufacturing businesses of computer peripherals and items like mice, USB flash drives, LCD monitors, hard disk drives and optical disk drives, as well as complete set computers such as notebooks, desktops, netbooks and tablets.
According to the latest available statistics, Hong Kong was the world’s second largest exporter of computer parts and accessories in value terms in 2009 after the Chinese mainland.

Most Hong Kong manufacturers have relocated their production facilities to the Chinese mainland, where various production processes like PCB assembly, plastics injection moulding and sheet metal working are carried out. Their Hong Kong offices focus mainly on product design and development, industrial engineering, management, logistic support and marketing, etc. In the wake of this relocation, most of such companies have been re-classified as non-manufacturing establishments, despite the fact that they have manufacturing activities across the boundary.

Hong Kong’s IT equipment industry is characterised by heavy dependence on imported parts and components. Given its free port status and the advanced telecommunications infrastructure, Hong Kong allows companies to source freely worldwide. For example, CPU’s, memory chips and other integrated circuits are mainly sourced from overseas suppliers like the US, Japan, Taiwan and South Korea. Other items such as PCB’s, passive components, mechanical parts and connectors may be sourced from other local manufacturers, or local enterprises on the mainland.

There are an increasing number of Hong Kong manufacturers adopting a strategy of vertical integration to enhance value-added content to their products. Product design and development, software programming, tool-making, production and/or quality assurance are all done under one roof. In view of the short product life cycles of IT products, Hong Kong companies place much emphasis on the collection of market intelligence. This enables them to start the development of new products at the earliest stage to catch up with the fast changing market environment.

The success of Hong Kong’s IT equipment industry also lies in efficient management. Against the fast changing markets, Hong Kong companies emphasise quick response to ensure effective marketing services to their customers, and to monitor the changing product trends. Many Hong Kong companies have further strengthened their quality assurance and environmental management systems, and are accredited with ISO 9000 - an internationally recognised standard for quality management system, and ISO 14000 - a standard for environmental management system.

Hong Kong’s exports of IT equipment grew robustly by 25% in the first half of 2011, after a strong growth of 33% in 2010. Exports of computer parts and accessories, complete computers and office machines surged by different degrees in the period.

The Chinese mainland was the largest export market for Hong Kong’s IT equipment industry, absorbing over two-thirds of the total exports. Exports to the mainland, mainly parts and accessories, increased strongly by 23% in the first half of 2011, amid the robust input demand stemming from expansion in outward processing production.

Meanwhile, exports to the EU and the US grew by double digits, while exports to ASEAN expanded rapidly. Exports to Japan also performed well.

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Posted: 12 September 2011, last updated 13 September 2011