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Association Profile

Overview of the Critical Components Industry

The critical components industry constitutes an important industrial sector of Hong Kong. It produces an extensive range of products including high precision components related to optics, mechanic, electronics, magnetic, and physical chemistry. Typical examples are LCD, PCB, magnetic head, hard disk components, micro motor, power supplier, connector, semi-conductor, lead frame and optical lens. All these components are critical to the successful development of the end-product manufacturing sectors.

 

There are presently over 1,000 manufacturers engaged in the local critical component manufacturing industry, employing 500,000 employees in Hong Kong and the district of Pearl River Delta. In 1998, the industry's total amount of domestic export and re-export (originated from PRC) added up to over HK$75 billions.

The development of critical component industry implies a strategic meaning to the future of the local manufacturing sector.

As a result of high cost of production, moving towards up-market and high value-added production have become the only way for industrial development, thus, a great potential in value-added ability of critical component is prompted.

There are several advantages of developing critical component industry:

   1. the industry occupies only a small production area as products are in tiny size,

   2. the industry will effectively enhance the value-added production as it is technology intensive and requires high degree of automation,

  3. critical component will also bring a positive effect in product design and development of the local manufacturing sector, and

   4. it reduces the monopoly of components by foreign countries.

 

 

 

 

 

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