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Electronics

Commercial Specialist responsible for the sector:

Zdenek Svoboda, Zdenek.Svoboda@trade.gov

Reports available to US companies upon request:

Electronics market in the Czech Republic (2008)

Summary

In 2007, exports from the Czech electrical and electronics industry reached over $30 billion, which represented 10% annual growth.  Preliminary figures for 2008 are even better.  The largest share of exports is traditionally sent to EU countries, primarily Germany.  This is due to the geographical proximity of customers and investments by German firms manufacturing electronics in the Czech Republic. For the fourth year running, the trade balance of the electrical and electronic industry is in surplus.  However, the global economic crises and a dramatic slow-down of all EU economies will make this a challenge in 2009.

In 2008, the breakdown of total electrical industry production was 44% heavy-current technology, 24% computer technologies, 21% audio/video and 11% for automation and medical equipment.  The sector is characterized by a high proportion of imported materials, components and parts for production and assembly, export of products.  Outsourcing of electronics manufacturing (contract manufacturing) has been a dominant trend. However, the Czech Republic’s new R&D facilities are becoming an increasingly significant driver of economic activity.  In early 2008, the Czech Electrical and Electronics Association estimated its revenues would grow by 5 to 10% yearly by 2010.