American Manufacturing Vs. Chinese Manufacturing on Electronic Devices

The global electronics manufacturing industry has kept on experiencing some trends and development. This industry has been producing devices, components, and equipment that contribute to technological advancements in the world. As the world keeps depending on technology, there is an increasing demand for electronics products.

In 2022, the global electronics market grew from $3554. 94 billion to $3739.37 billion in 2023. In the global electronics sector, China contributes a large percentage of revenue. This country is ranked among the top producers of electronic devices. In 2021, it accounted for 12.7 percentage of trade across the globe. Another leading producer of electronic devices is the United States. This country has a wide range of electronic manufacturing companies.

Electronics Device Manufacturing in China

China has continued to dominate the electronics manufacturing industry for some years now. This country is a integral manufacturing place for electronics despite its recent trade with the United States. China as a large manufacturing company exports about 50% of the laptops and cellphones across the globe.

Also, this country is the largest manufacturing destination of electronics across the globe. About three decades ago, the Chinese government maximized its low labor costs and big labor pool to produce more electronics. Since the integration of automation in advanced production facilities manufacturers began to get benefits from the rapid development of infrastructure in China.

China has continued to create partnerships with developed economies and an exporter of electronics to the United States.

What Electronic Devices Does China Produce?

China is known to be a large producer of electronic devices. It produces various electronics products. These products range from consumer electronics to industrial components. Cities such as Dongguan and Shenzhen in the South have factories. Also, Shanghai and Choingun are home to factories. Here are a few examples of electronic devices produced in China.

Computers, laptops, and accessories

According to an estimate, China produces 90 percent of the laptop manufacturers globally. Also, this country produces other computer components and accessories. There are several Chinese brands like Huawei, Dell, and the likes. Also, the Chinese government has continued to make effort to bridge the the technology gap from foreign producers, particularly for semiconductors.

Despite China’s dependence on imported semiconductors, this country remains an good option for many world-class laptop brands. Kunshan and Chongqing are considered the two biggest clusters for laptop manufacturing  in addition to other popular electronic production hubs, like Dongguan and Shenzhen. These hubs are not only known for producing laptops, but also components and accessories.

These hubs specialize in the production of some electronics devices. This helps in making the sourcing process easy and as well create synergies.

Cellphones

China is ranked among the largest producers of cell phones. Mobile phone brands like Xiaomi, TCL, and Huawei are from China. These mobile phone brands ensured string manufacturing capabilities were established in China before they expanded their manufacturing and sales activities beyond the country.

Suppliers of related components like transistors and chips in China benefited from this expansion and growth. Also, China is popular for owning a large earth element reserve. This is crucial in manufacturing electronic components, especially cell phones. These resources help local manufacturers to have an added advantage over foreign producers.

Electronics Manufacturing Companies in China

China is unarguably the biggest manufacturer and exporter of electronics devices in the world. This country has a large supply chain, advanced manufacturing capabilities, and skilled labor force. With these, China has been able to develop its electronics manufacturing industry. For the past years, China has been a hub for the manufacturing of consumer electronic products and other electronic devices.

When it comes to quality and innovation, China’s electronics manufacturing company is leading the way. According to an estimate, the market value of China’s electronic manufacturing services would reach 500 billion dollars in 2023. Let’s have a look at some of the top leading electronics manufacturing companies in China.

Huawei

Huawei is a global leader in electronics manufacturing. This Chinese based company’s mission and vision is to bring a fully connected world to everyone and organizations. The company which was founded in 1987 has vast experience and expertise in information and communications (ICT) devices and infrastructure.

Huawei is one of the most popular electronic companies in China and across the world. It has about 195,000 employees and operates in more than 170 countries. Huawei extends its services to over three billion people in the world. According to a report in 2020, Huawei is the best consumer electronics company throughout China. The comp[any is valued at 1.1 trillion yuan ($163.9 billion).

The product portfolio, solutions, and services offered by this company are secure and competitive. It offers extensive solutions across four main domains which are cloud services, telecom networks, smart devices, and IT.

Ryder Industries

This electronics manufacturing company is based in Shenzhen, China. Ryder Industries offer various manufacturing services such as electronic manufacturing services, box-build assembly, and printed circuit board assembly. Since it was founded in 1979, It has continued to grow and expand its services.  Presently, the company is ranked among the leading providers of electronic manufacturing solutions.

Ryder Industries has two production plants in China and a total of 2500 workers. These production plants are equipped with sophisticated machines. Due to this company’s flexible and strong capability, Ryder Industries maintains timely delivery. Also, they ensure all the needs of their customers are met.

As an ISO 13485, ISO 14001, and ISO 9001 certified company, Ryder Industries ensures all of production processes and testing processes meet quality standards. From components and raw materials procurement to the last stage of the production process, quality standards are always adhered to.

Xiaomi

Xiaomi is a top leading electronics company that specializes in the production of consumer electronics. This multinational electronics company has its headquarter in Beijing. Founded in 2010, Xiaomi has been able to deliver quality electronic products to consumers. Xiaomi designs, produces, and sells smartphone, software and hardware products.

It product portfolio includes audio, camera, power bank, smartphone, and more. The Xiaomi Inc provides a wide range of products like phones, televisions, and more. This company has been able to build a strong ground in electronics manufacturing. Also, its electronics products have become so popular across several countries in the world.

As part of its achievement, this electronics company became China’s largest smartphone company. It has produced several series of smartphone commodities which include Mi Series, Mi Max Series, and more. Since Xiaomi was founded it has continued to deliver quality.

Goertek Inc

This Chinese technology company is involved in the research, development, and production of consumer electronics. Since it was founded in 2001, this company has continued to excel in its production and services. As a leading supplier of components for wearables, smartphones, and other consumer electronics, this company employs advanced production techniques and equipment.

Also, Goertek Inc produces high-end audio products which include headphones, wireless earbuds, and more. Over the years, this company has been able to expand its services and solutions across other fields like virtual reality, smart home devices, and artificial intelligence. Also, Goertek Inc has partnered with popular technology companies like Qualcomm and Microsoft.

Shenzhen Kaifa Technology Co. Ltd

Shenzhen Kaifa Technology Co. Ltd is a top electronic manufacturing company in China. This multinational electronic company has about 9 global manufacturing sites with 17,000 employees. The company which was founded in the year 1985 has been able to expand its services over time. Customers across the world can testify of the comprehensive electronic manufacturing services offered by this company. This includes production control, logistics support, process design, technology research & development.

This company’s product portfolio includes circuit boards for tablets, smartphones,  and also components for smart meters. Furthermore, they produce various electronic devices like healthcare devices, security systems, and home products. Shenzhen Technology has invested hugely in research and development to contribute positively to the electronics industry.

Why is China a Leading Producer of Electronic Devices?

There are some factors that made China a large producer of electronics products.  Let’s review the underlying factors behind this.

Large labor pool and low labor costs

The low labor cost in China is an advantage in electronics manufacturing. China has more labor resources and as such the cost if labor is much lower compared to North America or Europe. Also, the labor force in China is trained to out the quality of products in mind when producing electronic devices. This is one of the major reasons many electronic companies prefer to hire workers from China.

China is a low-cost country when it comes to electronic component sourcing. The wages of laborers in this country is about three times more than that of Vietnam. Also, a number of companies consider China as an integral hub for electronic manufacturing.

In bigger cities like Beijing and Shanghai, wages are known to be higher. Therefore, a good number of manufacturers target provinces in the central areas and in the South.

Large reserves of rare earth elements (REE)

China has the greatest reserve of rare earth elements in the world. Although it accounts for about 37 materials, these resources are crucial for the manufacturing of electronic products. Also, they are widely used in components like electronic displays,  computer hard drives, flat-screen monitors, and more.

Developed supply chain

One of the underlying factors that contribute to China’s large production of electronics is its developed supply chain. China has developed a unmatched business ecosystem that is difficult to find anywhere in Asia. Also, this developed supply chain is beneficial to manufacturers in the distribution and procurement processes.

Local Chinese companies are capable of producing most of the components integrated in electronics. This helps in reducing logistics costs. Asides from reducing logistics costs, the shorter lead times reduces the working capital. In the long run, this reduces the financial burden for businesses.

Disadvantages of sourcing electronics in China

Although, there are several advantages of sourcing electronics in China, there are some disadvantages. It is important to be aware of these disadvantages before procuring electronic components and products from China.

Communication barrier

Most times, foreign companies encounter communication barrier when they partner with Chinese suppliers. This can be quite frustrating and for this  reason many companies partner with local organizations that have staff that can understand their needs.

However, some Chinese organizations have now improved in English language recently. China, in general, has improved  “low efficiency” to “moderate efficiency” when it comes to  English language. This is favorable to global companies as they can now partner with Chinese companies. The business culture of China still remains different from the Western ones.

Shipping costs and lead times

In recent years, China has experienced disruptions in its major supply chain. The Covid outbreak in China and the container shortages contributed to these disruptions. The rate of shipping containers increased more than it was in the pre-Covid levels. Therefore, there have been diversification trends as more electronic companies seek to move their production to Southeast Asia or Eastern Europe.

Electronics Manufacturing in America

In terms of employment generation and export potential, America is one of the fastest growing electronic industries in the world. The United States contribute a large percentage of revenue to the global electronic manufacturing industry. There are a wide range of electronic companies in the U.S. These companies work towards the development and growth of the global electronic manufacturing industry.

The United States has experienced several projects going offshore due to high production costs and cheap labor during the past years. However, more businesses are beginning to realize the benefits they enjoy when they partner with electronic manufacturing services in the USA. You can minimize production costs to a great extent and as well prevent investing on infrastructure when you work with electronic manufacturing companies in the U.S.

The electronics industry in America is huge. This industry has some of the oldest and best electronic companies in the country. Also, these companies have gained popularity across the world to the extent that they have become a household name.

Furthermore, the boom in the global electronics industry has resulted in the emergence as well as the development of some electronic companies in the world. Countries like China and Japan are also major players in the electronics industry.

Advantages of Electronic Manufacturing within America

Cost difference is negligible:

The increasing cost of transportation in Asia has decreased the price gap that exists between local and offshore pricing. For instance, electronics manufacturing companies in the U.S are competitively-priced and as such gives you the opportunity to optimize cost and production time.

Quality assurance:

Manufacturers are beginning to have a rethink about reshoring in America due to quality issues in highly-regulated industries like aerospace, medical, And aviation among others. Electronic manufacturing companies in America ensure they electronic products are manufactured without compromising quality. Tip electronic manufacturing companies in America offer the best quality standards.

Advanced PCB design engineering capabilities:

Electronic manufacturing companies in America are capable of meeting the requirements and specifications of highly specialized industries. From manufacturing equipment to semiconductor testing and industrial equipment, these companies have what it takes to serve a wide range of industries.

Employment generation:

In the past, many facilities were shut down due to offshoring and this resulted in, job losses. A good number of manufacturers are beginning to realize the intrinsic value of providing huge support to local electronic manufacturing companies in the USA.

Top Electronics Manufacturing in America

Epec Engineered Technologies

Epec Engineered Technologies is a great choice when looking for OEM product solutions. As an electronics company based in the United States, this company offers top-notch electronics manufacturing services. By offering advanced technical resources, fast delivery in the industry, and an effective manufacturing platform, Epec Engineered Technologies has been able to offer innovative solutions that offer highly reliable products.

Also, this company is a leading producer of user interface products, cable assemblies, electronic fans, custom battery packs, and printed circuit boards. This company has been able to earn the trust of their customers due to their flexible manufacturing capabilities, engineering services, and 24/7 customer support.

Epec Engineered Technologies has employees across the world; these employees are dedicated to creating innovative solutions that offer the best quality products.

Dell

Dell is ranked among the top PC suppliers. It deals with the development as well as the manufacturing of computers as well as different computer-related products. The company is headquartered in Texas. This company lays much emphasis on customer support by integrating a risk-free return policy. Over time, Dell expanded into the international markets after investing in research and development.

In the early 2000s, Dell expanded its products and solutions to include digital cameras, televisions, and a number of computer-related products. Dell was renamed as Dell Inc in  2003. This signified its move into a broader spectrum in the consumer electronics industry.

One of the benefits of working with this company is that it offers high-quality personal computers at very competitive prices. Also, the company ensures all of its products undergo the necessary tests before they are approved for sales. Dell and another firm acquired an American corporation, EMC.

Apple Inc

Apple Inc is a reputable brand in the United Sates. It is known for designing, manufacturing, and supplying electronic products like personal computers, smartphones, wearable devices, and tablets. Also, this company provides software related services and third-party digital content.

Its product portfolio comprises Mac, Apple Watch, Iphone, Apple TV, Mac, Ipod, and more. Apple provides a wide range of consumer software applications like macOS, iCloud, iOS, and AppleCare. Furthermore, Apple delivers and sells digital applications and content via Apple News, Apple Music, App Store, Apple TV, and Apple Arcade.

Furthermore, this company offers cloud services, advertising services, and payment services. In 2022, report has it that Apple would be partnering with Samsung Electro-Mechanics to produce the M2 chip. Apple is known for producing high-quality products. This company doesn’t compromise the quality of its products.

HP

This is another popular electronics manufacturing company in the United States. With its cutting-edge technology, this company delivers a wide range of consumer electronics such as digital cameras, laptops, computers, and more. HP stands for Hewlett-Packard.  HP was founded in 1939. With a long-standing experience in the production of electronic computers.

Also, this company specializes in the production and development of software and hardware components. HP also provides other computer-related products such as desktops, accessories, and printers. As an American-based electronics company, HP works with a dedicated team of engineers and developers who are dedicated to producing quality computer products.

HP company ensures all the needs of its customers. It manufactures its products to suit the increasing demands in the electronics industry. The vision of HP is to make life much easier and better for everyone through its innovation.

U.S Manufacturing Vs China Electronics Manufacturing

In terms of electronics manufacturing, China remains at the top. This country has a good number of electronics manufacturing companies. Recently, there’s been a huge and tremendous change in the electronics manufacturing field in this country. China has continued to lead the world as regards its electronic manufacturing output.

The electronics industry in America is huge. This industry has some of the oldest and best electronic companies in the country. Also, these companies have gained popularity across the world to the extent that they have become a household name. Highly ranked electronic companies in the United States benefit from a good share of the international electronics industry.

When it comes to quality and innovation, China’s electronics manufacturing company is leading the way. According to an estimate, the market value of China’s electronic manufacturing services would reach 500 billion dollars in 2023.

Conclusion

The electronics manufacturing industry keeps experiencing growth. As more companies are emerging, the annual growth rate in this industry keeps increasing. China is home to a wide range of electronics manufacturing companies. There are other countries with electronics manufacturing companies. However, some countries are leaders in electronics manufacturing. We have evaluated electronics manufacturing in China and the U.S. China has more advantages compared to the United States.

In the past few decades, China’s electronics manufacturing industry has developed rapidly, and now China has become the world’s leading electronics manufacturing power. According to reports, the output value of China’s electronics industry in 2020 reached nearly 350 billion US dollars, accounting for a quarter of the global assembly output value in 2020. Because more and more companies around the world choose to outsource electronic manufacturing services to China, including world-renowned companies such as Tesla, Apple, and Volkswagen. But do you know why? Well, in this guide, we will explain the advantages of Chinese electronics manufacturing services and how to choose a good electronics manufacturer in China. Now, let’s explore together.

Advantages of Electronic Manufacturing in China

There are many advantages to outsourcing electronics manufacturing in China, but in this article, we will only discuss the key points:

Low Costs

One of the main advantages of China’s electronics manufacturing is lower costs. On the one hand, China has abundant labor resources, so the labor costs here are much lower than in Europe or North America. What’s more, China’s workforce is well-trained to ensure products can be fabricated with high quality, which is why many companies prefer to cooperate with Chinese electronics manufacturers rather than seek partners in other Asian countries. On the other hand, Chinese electronics manufacturers can take advantage of economies of scale, which can reduce production costs as well. They have a large order volume and a stable supply chain, so they always have access to raw materials at the most affordable prices, reducing overall production costs.

Short Turnaround Time

Many Chinese electronic manufacturers provide turnkey electronic manufacturing services, from product design to manufacturing and assembly, all these processes are done under one roof, which can speed up your time to market. In addition, most electronic manufacturing factories in China are equipped with industry-leading machines to perform the fabrication, their highly automated processes can definitely improve work efficiency and productivity.

High Level of Expertise 

China has been in the electronics manufacturing industry for decades and has accumulated a lot of experience serving customers in different industries such as automotive, medical, aerospace, and defense. Therefore, if your company lacks electronics manufacturing expertise, then you should partner with a Chinese electronics manufacturer to be fully supported by electronics manufacturing resources and expertise.

How to Choose a Reliable Electronic Manufacturer in China?

If you decide to outsource electronics manufacturing services in China, it can be tricky to choose a reliable electronics manufacturer to work with. You must know that there are more than 30,000 electronic manufacturers listed on Alibaba alone, so how can you choose a supplier that is competent for your project? Below we list the main considerations when choosing an electronics manufacturer in China, let’s discuss them one by one.

Quality First

Quality is always the primary consideration when outsourcing electronics manufacturing in China. When choosing an electronics manufacturer, you should check their quality control system, the most straightforward way is to check their certifications such as ISO 9001, RoHS, IPC, BSCI, and UL, which certify that their manufacturing processes and products meet stringent quality standards and regulations. At the same time, you can ask about their inspection method, such as what kind of inspection they do to check the quality of the product.

Scope of Service

Different electronics manufacturers provide different services, some only provide manufacturing services, and some can provide one-stop services. Therefore, before making a decision, it is important to confirm with them what kind of services they offer to ensure that they can meet your project requirements. On the other hand, you should also pay attention to their expertise, some manufacturers are good at making products for automotive or medical, while some manufacturers have experience in other fields. It’s better to work with an electronic manufacturer who has experience with similar projects as yours.

Supply Chain Management

Working with electronic manufacturers who have a stable supply chain can save your costs and shorten time-to-market. Their good relationship with suppliers enables them to get materials and components at lower costs, which also can avoid project delays caused by the material shortage. Good electronic manufacturers also focus on supply chain management and inventory management, they can arrange stock and procurement reasonably based on updated market information they get from suppliers.

Factory Facilities

Advanced factory facilities are beneficial to improve production efficiency, as most of them are highly automated. Usually, a good electronic manufacturer places great emphasis on introducing new equipment and technologies, because outdated machines have limited capabilities that affect manufacturing speed and product quality. So you can ask the manufacturer for their equipment list, or you can visit their factory directly.

MOKO Technology: Your Preferred Electronic Manufacturing Partner

As a leading electronic manufacturer in China, MOKO has been engaged in electronic contract manufacturing services for 16 years, serving customers in more than 100 countries and regions around the world, who come from different industries like medical, automotive, energy, and so on. Our experts are proficient in every technology involved, from electronic design and electronic assembly to PCB fabrication and testing, we can handle everything for your project.

If you are looking for a reliable electronic manufacturing partner in China, we are your first choice. Contact us today to find out more about our service!