Components sub-sector development in Turkey

Electronics IndustrySouth-East European INDUSTRIAL Мarket - issue 1/2015

The imports for Circuit Components Product Group is 55.1% of total imports. Cathode Ray Tubes is 0.7%, coils and transformers is 8.5%, acoustical elements is 8.9%, printed circuits is 5.1% and connectors and relays is 21.6% of total import. The manufacturing of the chipsets is desired but proven to be extremely difficult due to required high volume, very advanced technology and heavy investments issues.

In spite of the small scale production of some defense industry needs such as the sensors and the microelectronic components categorized as critical items can be considered as relational and an opportunity to enter into the field. According to the TESID 2013 data 90% of import of component Sub-sector is from EU and Far East countries and 41% export is to North Africa and Middle East countries where as EU and Non-EU European countries is following with a total market value of 38% of the total exports.

Some of the major players in the components sub-sector

SAR Electronics
Since the start of its business activities in 1979, SAR Elektronik A.S., has become a globally recognized, international corporation because of its successful performance in Remote Controller production. In the following years, it has shown a rapid advancement and added TV Tuners, Remote Controllers, RC Receiver-Transmitter units, Electronic Control Units for Kombis, Digital Satellite Receivers, Terrestrial Satellite Receivers, Info Display Units, and Environmental and Power Control devices to production line. Its 3,000 m2 production area is located in Ataturk Organized Industrial Zone, in Izmir which houses the largest export harbor within the region. 90% of production is exported mainly to Europe and to nearly 30 countries all around the world.

EMPA
EMPA is serving to Turkish Electronics industry with worldwide component suppliers since 1981.
First TV remote control software in Turkey was developed by R&D department of Empa. The company is developing business in global market by serving customers in the Middle East Region in addition to Empa Hong Kong organization.

Other professional and industrial equipment sub-sectors
Other professional and industrial equipment is one of the sub-sectors of the electronics industry in Turkey. This sub-sector contributes greatly to the electronics sector and has an important role in the production mechanisms and in the operations, together with Information Technology products determine the technological level of the production processes. The other professional and industrial sub-sector has also a key position for the automation and flexibility of production mechanisms.

Domestic market of the sub-sector is limited to the needs of other production facilities and the operating companies of the sub-sector are small and medium size enterprises. Total production of the other professional and industrial equipment sub-sector for 2012 was USD 2.1 billion. The total export of Turkey is USD 744 million. EU Member States and MENA received 46% of share of the export value. The total import for this sub-sector is USD 4.8 billion and where 41% of the import value was from the EU Member States.

Success Story of Inform Electronic
Inform Electronic, one of the European leading power solution specialist, is established in 1980 with the aim of designing and building industrial electronic systems. It diversified into the production, and marketing of standard professional electronic equipment, and special projects. Inform product range varies from Uninterruptible Power Supply (UPS) Systems, Voltage Regulators, to DC Power Supply, Telecom Equipment, Battery chargers, Inverters, 19’ rack cabinets and other electrical products and electronic equipment.

It has 27,500 m2 closed production area, committed to the manufacturing of electrical products and electronic equipment. Also, has capacity of assembling 300 millions components per year. In 2010, Inform is being acquired by Legrand Group, which is global specialist in electrical and digital building infrastructure since 1860. Then, market domination of this company has been increased domestically and overseas.

Inform Electronic is not only a leading company in Turkey, also recognized worldwide thanks to the its 33 years experience in the sector and innovative identity. Structuring of the company covers all of the cities in Turkey. Distribution of Inform Electronics network extends at five continents; from Europe to Asia, South America to Africa and Australia, demonstrating its adaptability to different markets and their conditions at around 75 countries.

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