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Japan''s Electronics Industry Into a Trade Deficit

by: Dec 19,2013 967 Views 0 Comments Posted in News

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Japanese imports of appliances PCB, electronic devices and components are on track to exceed exports in value for the first time this year.

Electronics imports in the January-September term topped exports by some 800 billion yen ($7.69 billion), PCB flipping from an export surplus of 220 billion over the year-ago period, according to data from trade bodies.

“Japan’s

In the past, a weaker yen tended to help Japanese manufacturers increase exports. But the electronics industry is no longer following that pattern because many firms PCB have shifted a significant portion of their output abroad since the 2008 Lehman shock PCB.

According to figures compiled by the Japan Electronics and Information Technology Industries Association and the Japan Electrical Manufacturers' Association, the country had net exports in excess of 9 trillion yen in its electronics sector as a whole, including consumer electronics and parts, in the early 1990s. The trade balance PCB is certain to slip into a deficit in 2013, something that has never happened since comparable data became available in 1991.

Televisions, once a driver of Japanese manufacturing exports, are a notable example. In the first three quarters of this year, TV imports surpassed exports by 110 billion yen. PCB Back in 1991, domestically built products made up nearly 80% of the PCB country's TV market. Last year, imports accounted for 6.2 million of the 6.4 million units shipped in Japan. Panasonic, for example, ships from Malaysia many of the sets it sells in Japan.

Another factor driving up electronics imports is the sharp influx of smartphones from abroad PCB, including the iPhone. Cell phone net imports jumped from some 200 billion yen in 2008 to more than 1.1 trillion yen in 2012. With the country's PCB largest cell phone carrier, NTT Docomo, adding the Apple smartphone to its lineup, imports will likely increase further PCB.

For electronic components, an area in which Japanese firms maintain a competitive edge, exports still exceeded imports, PCB but not enough to absorb the drop in exports of final products.

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