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Industrial goods

Electronics

Electronics - Illustration credit: Fox O'Rian

The EU is a major importer of components and equipment, while maintaining a strong international position in mobile telecoms

EU trade in this sector is dominated by imports, particularly from the US and Japan. Together, these two countries account for half of total EU imports of electronics. Although the EU is very strong in certain electronics markets, it has a negative trade balance in the electronics sector as a whole.

The EU is a major net importer of electronic components, especially semi-conductors and integrated circuits. The European market for these inputs has grown with enormous rapidity. This growth has been stimulated primarily by increased demand for personal computers but also by the growing demand for digital mobile phones, automobile electronics and other telecommunications equipment, which increasingly rely on semi-conductors. European companies have now begun to invest more heavily in semiconductor and integrated circuit production. This is a rapidly changing and volatile industry which demands extremely high investment costs.

The EU is both a big importer and exporter of computer and office equipment, including hardware, peripherals and software. The US is the leading producer at world level, followed by Japan and Europe. European software is highly competitive in the face of stiff competition from Japan and the US.

In the area of telecommunication equipment, European manufacturers maintain a strong international position in mobile telecommunications. They are also leaders in technological innovation, producing technologies such as GSM and UMTS (the mobile 2G and 3G pan-European technologies). The EU has consistently shown a positive trade balance in this sector. Exports are concentrated principally on network technologies, radio and transmission equipment.

The EU is also a net importer of consumer electronics including audio equipment, TVs, VCRs, cameras, cable terminals and pay-TV decoders. Japan dominates this market world-wide. Both the US and the EU are net importers of consumer goods European companies are well positioned in the colour TV market. They control a major share of the world television set market and offer the most comprehensive range of models both in screen size and technical specifications. This is a segment of the market in which European firms enjoy technical leadership and a large and geographically widespread market share.

Supporting information

Texts

    Meeting on Semiconductors, attended by delegations from Korea, Japan, the United States, Chinese Taipei and the European Commission.

  1. Joint Statement
    • 23 September 2004
    • Format: PDF
  2. Chair's Summary
    • 23 September 2004
    • Format: PDF
  3. Chair's Proposal
    • 23 September 2004
    • Format: PDF
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Industrial goods

The EU is the world's biggest exporter of manufactured goods, and is a global market leader for high-quality products.