On November 8, at the [2024 International Component Industry Chain Overseas Expansion Forum] held by SMIC at Shenzhen World Convention & Convention Exhibition, Dr. Wang Jian, co-founder of Z-IC Club, delivered a keynote speech on "Southeast Asian Electronic Components Market Development Strategy", which deeply discussed the opportunities and strategies for Chinese enterprises to expand in the ASEAN market. Dr. Wang Jian gave a detailed analysis of the key role of the ASEAN region in the global electronic components industry chain.
Z-IC Club's mission and service advantages
At the beginning of the speech, Dr. Wang Jian introduced the mission of Z-IC Club as a platform, which is committed to helping the development of China's chip industry and promoting industrial collaborative innovation. Through independent professional services, Z-IC Club provides multi-faceted support for governments and enterprises, especially in brand going global, industry analysis reports, event planning and industry assistance. Dr. Wang Jian said that Z-IC Club is not only a simple service platform, but also plays the role of providing a "bridge" for China's chip industry to the international market, ensuring that the journey of enterprises to "go to sea" is more effective. The speakers mentioned some of the success stories of Z-IC Club, including providing industry consulting and market analysis services to well-known domestic companies such as SMIC and Changan Automobile. For example, the analysis report produced by Z-IC Club for SMIC shows in detail the production capacity of domestic chip manufacturing, pointing out that SMIC has ranked third among the world's foundries and is fully loaded.
Figure: Dr. Wang Jian delivered a keynote speech on "Southeast Asia Electronic Components Market Development Strategy".
Huge potential and development trends of the ASEAN market
Next, Dr. Wang Jian analyzed the broad prospects of the ASEAN market. ASEAN countries include Vietnam, Malaysia, Singapore, Thailand, etc., which have outperformed economic growth in recent years. Vietnam, for example, has seen rapid GDP growth in recent years, with a tripling growth demonstrating its economic dynamism. According to the data provided by the speakers, ASEAN's overall trade volume has continued to grow, and the total value of imports and exports has increased significantly. At the same time, the trade surplus is gradually narrowing, indicating that the cooperation between local ASEAN enterprises and Chinese enterprises is good.
With the continuous development of ASEAN's economy, the market demand for electronic components is strong, especially in countries such as Vietnam and Malaysia, attracting more and more investors in the global industrial chain. ASEAN countries not only have advantages in terms of labor and production costs, but also are geographically close to China, which is very beneficial to export logistics, so they have become an ideal choice for Chinese enterprises to expand overseas.
Photo: Dr. Wang Jian explained the huge potential and development trends of the ASEAN market
ASEAN's position in the global electronic components industry chain
From the perspective of the global semiconductor industry chain, ASEAN countries have a complete layout of the electronic components industry chain. The speech detailed the distribution of the industrial chain in ASEAN: Malaysia has traditional advantages in the field of packaging and testing, while countries such as Singapore and Vietnam also occupy an important position in printed circuit board manufacturing and component processing. Vietnam is particularly prominent, with its electronics value chain expanding rapidly over the past decade and becoming a key link in emerging markets.
China's share of the global semiconductor export market has increased significantly in recent years, from 9% a decade ago to 19% today. This shows the competitiveness of China's semiconductor industry in the global market. Dr. Wang Jian also pointed out that the global demand for ASEAN electronic components is expected to continue to grow, providing stable export opportunities for Chinese enterprises, especially in the fields of automotive electronics, industrial electronics and consumer electronics, and the demand potential of the ASEAN market cannot be ignored.
Figure: Dr. Wang Jian explained ASEAN's position in the global electronic components industry chain
The specific strategy and layout of expanding the ASEAN market
In view of the actual strategy of Chinese enterprises to expand the ASEAN market, Z-IC Club has established a support system in many ASEAN countries, including setting up overseas warehouses and cooperating with local legal teams to provide legal and localization consulting services. At the same time, Z-IC Club provides "bag and settle" support for Chinese enterprises in ASEAN countries, assisting enterprises to build factories and production facilities locally, reducing upfront investment and risks. These measures provide a reliable guarantee for the rapid landing of enterprises in the ASEAN market.
In addition, Z-IC Club actively organizes and participates in industry exhibitions and business events in the ASEAN region, such as SEMI events and Vietnam Electronics Fair, to enhance the visibility of Chinese brands in the local area. By participating in these exhibitions, Z-IC Club is able to help companies better understand the local market needs and connect with potential customers and partners.
Z-IC Club's industry consultant team also helps companies analyze the key players and competitive landscape in their target markets through consulting reports. Taking Changan Automobile as an example, the consulting report provided by Z-IC Club covers a detailed analysis of the market status of control chips, logic power chips, sensor chips and other domestic and foreign markets, and provides targeted strategic guidance for overseas market development. The speaker emphasized that in the context of the fiercely competitive "red sea" market in the world, the ASEAN market is an important target for Chinese enterprises to accelerate the development of "going global".
Conclusion
The speech provided comprehensive guidance for the expansion of Chinese electronic components enterprises in the ASEAN market. Dr. Wang Jian demonstrated the attractiveness of the ASEAN market and the value-added services of Z-IC Club from the aspects of ASEAN market potential, industrial chain layout, service support of Z-IC Club, and the strategy of enterprises going overseas. Dr. Wang Jian concluded that the ASEAN market is not only an important stage for Chinese companies to expand their overseas business, but also a key opportunity for China's chip industry to further grow on the global stage.
Related：
From Cost to Brand, How Can Chinese Companies Win the Competition in Global Markets
2024 International Components Industry Chain Expansion Forum Successful Concludes
Skylab's Global Positioning Journey and Insights for Global Expansion
A New Journey for Chinese Semiconductor Industry
RISC-V the Ultimate Solution to the Revolution in Production Relations
