KResearch is of the view that Thailand's electronics exports during 2H11 will improve over 1H11,especially computers and related components because purchase orders have begun to come in ahead of the year-end holiday season. A quick recovery in Japan's manufacturing industry should help bolster purchase orders during this period, as well.
However, public debt problems that have dampened economic growth, consumer sentiment and purchasing power in the US and Europe are causing sales of electronic products to decline considerably. If the US economy slips back into recession in 2H11, that would inevitably deal a major blow to the Thai electronics industry. Nevertheless, KResearch expects that Thai electronics exports will reach perhaps USD33,775-34,750 million in 2011, increasing 2.5-5.5 percent over the 21.9 percent growth recorded in 2010.
Looking ahead, KResearch is of the view that the Thai electronics industry will have to adjust quickly because many IT products are undergoing technological leaps in efficiency and being made more environmentally-friendly. This is evident in products such as desktop PCs that are gradually being replaced by tablets. With the advancement of network systems and cloud computing technologies, there will surely be a marked change in the desktop PC industry soon. Automotive electronics systems have also advanced due to: 1) changes in the global automotive industry, especially now that carmakers are focusing on eco-cars; and, 2) new EU regulations, requiring members to install updated airbag and motion sensors, plus other microelectronic devices in cars.
To ensure that Thai electronic manufacturers do not lose out on export opportunities, they will have to revise their operational strategies and products to keep pace with technological changes and the needs of the global market. If these improvements can be achieved, Thailand could become a leading production base for electronic products.