Industry Analysis & Industry Trends
Over the past decade, the Switching Equipment Manufacturing industry developed in conjunction with China's telecommunications sector, as the largest proportion of products from this industry is purchased by telecommunications enterprises.
In early 2009, three 3G-network-operating licenses were issued to the main telecommunication operators. A TD-SCDMA operating license was issued to China Mobile, while CDMA2000 and WCDMA operating licenses were issued to China Telecom and China Unicom, respectively. Since then, they have been investing in 3G-network construction, which has resulted in growing demand for switching equipment. In 2012, industry revenue is set to increase 11.0% to $66.7 billion, representing annualized growth rate of 17.9% since 2007.... purchase to read more
Industry Report - Industry Investment Chapter
Using depreciation as a proxy for capital (5.6% in 2012), and wages as a proxy for labor (7.5% in 2012), the capital to labor ratio in this industry is forecast to be approximately 1:1.3 in 2012, which indicates a high level of capital intensity.
Automatic production lines are largely deployed in the industry, which lowers labor costs and increases capital requirements. However, high-tech production also requires maintenance and control by professional technicians.
Large funds are required to ensure new product development. A large part of this is devoted to hire professional engineers and technicians. This is especially applicable for major players as research is carried out independently, and high wages are paid for professional researchers and development staff... purchase to read more