elektrotechnicky_Sestava 1 21.7.10 12:40 Stránka 1 Electrical Engineering and Electronics Industry The electrical engineering and electronics industry has been shaped by a long-standing tradition and remains one of the most dynamic sectors of the Czech economy. Its position within the manufacturing industry has been continually strengthened, mainly in relation to the long-time growth of coherent sectors, such as the automotive industry, energy and construction. The EE/electronics industry and the automotive and plastic industries are the main driving forces of the Czech economy. Their competitiveness has been constantly rising, mainly due to new technologies used in production. The production volume as well as the trade balance have grown. In 2007, revenues from sales of products and services in the electrical engineering and electronics industry amounted to CZK 527 billion, which represents a share of 15.5% of revenue in the whole manufacturing industry in the Czech Republic. The electrical engineering and electronic industry ranks third in total revenue following metallurgy and transport engineering. The Japanese company Panasonic supplemented its production of LCDs with a research and development department focused on electronic and mechanical solutions and software. The Danish company Bang & Olufsen launched its production in Kopřivnice together with an R&D facility, the first of its kind outside Denmark. The leading European chipmaker, STMicroelectronics, runs the biggest individual IC design group in the CEE region, focusing on state-of-the-art analogue/mix signal design. The international company ON Semiconductor, continuing the tradition of Tesla, also operates, apart from manufacturing, two new product development centres focused on the development of new technologies for the production of integrated circuits. Brno hosts one of the fastest growing design centres of Flextronics and AMI Semiconductors and is truly a hub of electron microscopy in the CEE region with three world class-companies – FEI, TESCAN and Delong Instruments - conducting research and manufacturing in this high-tech field. The high level of technical education, together with the strategic position of the Czech Republic, has attracted numerous foreign investors at the turn of the millennium, which have greatly contributed to a fundamental restructuring of the production base, stabilisation of the sector, an increase in work productivity and quality of production and expansion abroad. Several strong foreign companies have already set up their R&D centres and others intend to do so. For example, the Honeywell Company established a technological centre in Prague in 1993 in close cooperation with the Czech Technical University. Its positive experience led the company to set up a global R&D centre in Prague and an engineering centre in Brno. Direct foreign investments in the period from 1997 to 2007 in the EE/electronic industry have exceeded CZK 150 billion. The EE/electronic industry accounts for 30% of the total volume of FDI in the Czech Republic and holds second position after the automotive sector. The Czech Republic has become the number one producer of computers in the Central Europe, due, for example, to the Taiwanese investor Foxconn CZ, whose production facilities are located in Pardubice and Kutná Hora and which has become Structure of the EE/electronics industry in 2007 n Heavy-current electrical engineering n Computer technology n AV engineering, electronic components n Instrument and automation devices Source: Czech and Moravian Electrical and Electronic Association 44% 24% 21% 11% elektrotechnicky_Sestava 1 21.7.10 12:40 Stránka 2 Electrical Engineering and Electronics Industry the second largest exporter in the CR. It is mainly due to Panasonic, which has produced televisions in Pilsen for over 10 years and now to Žatec in the Triangle industrial zone that the Czech Republic has become the number one European producer of LCDs. Heavy-current electrical engineering accounts for the highest share of revenue within the whole sector (44%), followed by computer technology (24%), radio and television technology (21%) and instruments and automation equipment (11%). Manufacturing of heavy-current electrical products has a stable position in the structure of the Czech electrical engineering industry, mainly due to a long tradition and the extensive experience of the workforce. The main products have traditionally included electric motors, generators and transformers, electric distribution and switching devices, cables and insulated wires. The foreign investments in the automotive industry have contributed to the fact that the range of electrical industry products has been extended to include electrical equipment for the automotive industry. Technical products and services meeting the world standards are mainly sold to the countries of the European Union. Czech Trade Promotion Agency Head Office Dittrichova 21, Prague 2 Czech Republic info@czechtrade.cz www.czechtradeoffices.com Foreign owners of large manufacturing facilities have undertaken the necessary modernisations of technologies, improved the organisation of production and established new business relations. Siemens provides a good example of a successful entry of a foreign investor. Siemens operates two production facilities and has become one of the biggest employers in the Czech Republic. Due to the favourable investment climate, the ongoing interest of foreign investors, a highly qualified workforce with still relatively low labour costs and advantageous conditions for the development of technological and business support services centres, the electrical engineering and electronic industry is expected to continue growing in the coming years. Position of the EE/electronics industry with the manufacturing industry (revenues for sales of own products and services) n Production of vehicles n Production of electric and optical device n Production of metal and metal-working products n Production of machinery and equipment n Food and tobacco industry n Rubber and plastic industry n Chemical and pharmaceutical industry n Others 17.9% 16.4% 14.8% 10.1% 9.2% 6.4% 5.8% 19.4% Source: Czech Statistical Office, Ministry of Industry and Trade Czech and Moravian Electrical and Electronic Association http://www.electroindustry.cz Czech Exporters Directory http://exporters.czechtrade.cz/en