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Suzhou as International IT Base on Global Supply Chain

The exquisite classical gardens of the ancient city of Suzhou are no longer the only thing that enjoys world fame. The mushrooming of IT plants in the various development zones in Suzhou, which makes the city the largest manufacturer of IT products in China, has caught worldwide attention. The officials of Suzhou Municipality, told the mass media from China and abroad with pride: "In 2004, the sales revenue of IT products from Suzhou amounted to US$ 26 billions, comprising 10% of the total in China. A concentration of over 2,000 IT enterprises in Suzhou is the biggest grouping in China," The output of computer mouse, for instance, exceeded 60 million annually, which is over 60% of the world's output. As for other noticeable IT products, their annual output and proportion in the world are as follows: liquid crystal screen for cell phones: 700 million, 25%, crystal vibrator for cell phones: 750 million, 30%, and computer Mainboard: 20 million, 20%. These figures point to the undisputable fact: Suzhou is unraveled in IT industry in China.


CPU sealed testing plant of AMD Semiconductor put into operation.

"A traffic congestion on Shanghai-Nanjing Expressway would cause an alarm on the global supply chain," so described Xie Ming, director of Suzhou Municipal Taiwan Affairs Office, about the importance of IT industry of Suzhou. An incomplete statistic shows that three out of ten laptop computers in the world are being turned out in Suzhou. Nine from the ten well-known laptop manufacturers of Taiwan have set up their plants in Suzhou.

Back in 1993, Li Kunyao of BenQ "discovered Suzhou" in an expanse of farmland, and made resolve to locate his plant in Suzhou. A dozen years later, Suzhou has become a home base of major electronic IT manufacturers on the supply chain of laptop computers, integrated circuits, mobile phones, digital cameras, and computer parts, spread across Suzhou Industrial park, Suzhou New and Hi-tech Zone, and other development zones.

Noteworthy is the fact that the IT industrial group of Suzhou is showing a head-on momentum of growth. "He Jian Technology", located in Suzhou Industrial Park, is reportedly planning to invest US$ 100 million in a period of ten years on several manufacturing bases for chips. Samsung of Korea, in its in-depth development in Suzhou Industrial Park, has planned to shift 30% of its LCD production to Suzhou, and to invest another US$ 260 million on plant expansion.

It is reported that Suzhou will orient its economy chiefly on the basis of electronic manufacturing, industries, and foster economic growth from IT expositions, and bring about coordinated development in tourism, cultural undertakings, and relevant sectors. In the development course from electronic industries to IT exposition economy, and from COMPUTEX of Taipei to eMEX of Suzhou, and in the shifting of Taiwan industries onto the Mainland via the platform of Suzhou, it can be expected that a multi-polarized industrial economy will be formed in this "world factory" with all-round growth in IT, tourism, expositions and conventions. 

August 10, 2005

   
 
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