PALO ALTO, CA, April 29, 2004 — The burgeoning growth of telecommunications in Asia is helping the electronic components and packaging market recover from the economic downturn. Rapid developments in computers and consumer electronics sectors are also likely to provide an impetus to this market, and participants that provide reliable service at reasonable prices can anticipate growth.

New analysis from Frost & Sullivan (electronics.frost.com) reveals that revenue totaled $8.25 billion in 2003 and is projected to reach $17.1 billion by 2010.

"Next generation electronics is all about integrated computer, telecommunication, and consumer electronic devices that ‘talk' to each other," says analyst Mandeep Singh Oberoi. "Such technological convergence increases efficiency while enabling cost savings, and promoting market growth."

Manufacturers of electronic components and software vendors are benefiting from the healthy growth of computer peripherals and office equipment markets. Periodic upgrades of the equipment also drive the market.

Further impetus is provided by the emerging demand in Asian countries, where there is a proliferation of computer networking and related applications for home, industry, and education.

Component manufacturers are facing end-user demand for smaller, faster, portable, and economical devices. As electronic assemblers place electronic components onto printed circuit boards (PCBs), miniaturized components is crucial for smaller applications.

Participants that can optimally integrate their components into small suites, without compromising on performance, are likely to gain a foothold in this market. R&D is also focusing on improving existing packages, such as BGA, CSP and MCM.

The demand for infrastructure development for information transfer in Asian countries, such as China and India where North American businesses are outsourced contributes significantly to the electronic component and packaging market.

So does the growing demand for high-end applications, such as Web-enabled network video cameras, medical applications, such as glaucoma monitors and imaging equipment and consumer devices that demand higher automation.

"Due to the changing end-user requirements for more customer oriented and profitable products, the components and packaging industry is focusing on customer participation and feedback to build relationships and thus improve market share," said Oberoi.