ELECTRONICS

Hopes of a recovery for 2020 dashed by the Covid-19 outbreak

B2

MEDIUM RISK for entreprises

  • Fragmentation

  • Internationalization

  • Capital Intensity

  • Profitability

  • Broad customer base (consumer electronics, automotive, telecommunications, industry, etc.)
  • Powerful long term growth drivers (digitization of the economy)
  • Technology intensive, innovative industry
  • Semiconductors: concentrated, high value added, high margin product markets
  • Commodity electronic components: fragmented, low barrier to entry, low margin product markets
  • Saturation reached in major client industries (smartphones, computers, etc.)
  • Volatility, with one major recession every four to five years on average
  • Trade tensions adding uncertainty to global supply chains

Key players

Country Role Sector risk
China

#1 manufacturing country

B

Medium risk

Taiwan

#2 manufacturing country

B

Medium risk

South Korea

#3 manufacturing country

B

Medium risk

Japan

#4 manufacturing country

B

Medium risk

Singapore

#5 manufacturing country

C

Sensitive risk

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

Risk Analyst

Aurélien Duthoit

aurelien.duthoit@eulerhermes.com

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