The document provides an overview of electronics manufacturing clusters in Central and Eastern Europe, highlighting key countries such as Hungary, the Czech Republic, Poland, and Slovakia, each with their prominent companies and regional clusters. It emphasizes the strategic benefits of investing in these regions, including lower labor costs and strong educational backgrounds supporting the industry. Additionally, the text outlines local governmental support initiatives for developing supply chains and manufacturing incentives to attract international businesses.

1. Electronics manufacturing
clusters in Eastern Europe:
an ultimate guide
Dr. Balazs Csorjan, investment promotion specialist
2016 edition

2. [NOTE]
These slides are
designed not to present
but to read as a
document. Switch to
Fullscreen View, please!

3. Central- and
Eastern Europe
CEE is an emerging manufacturing location
inside the European Union.
Electronics is a key sector in many member
states, supporting with governmental programs
and incentives.
Electronics clusters provide innovative supply
chains and focused manufacturing skills, making
easier to do business on the European market.
These slides try to introduce the main locations
and players in CEE electronics industry.

4. Hungary
Hungary has the largest share in regional
electronics production. The local suppliers,
EMS and OEM companies shape two
electronics clusters:
Eastern Hungarian electronics cluster
Bosch, Electrolux, Flextronics, Samsung,
National Instruments, Jabil Curcuit, General
Electric - just some of the leading elecronics
companies which are doing business east
from Budapest.
The location provides: 30% labour cost
discount compared to Budapest; 46% of all
Hungarian job seekers live here; 95
developed business parks; 600 kms
motorways; awards by Financial Times’ fDi
Magazine
Next slide: a short company video profile:
General Electric Hungary
Western Hungarian electronics cluster
Foxconn, Visteon, Sanmina-SCI,
Nokia/Microsoft, Sanyo, Valeo, Phillips - just
some of the leading electronics companies
which are doing business in the Western-
Hungarian electronics cluster, located west
from Budapest.

5. Czech Republic
The country has the second largest regional
share, and the number of electronics headcount
reached 180k employees.
Moravian-Silesian electronics cluster
The 2nd largest Czech city, Brno located in the
South-Eastern part of the country. Brno has
strong technical education on secondary and
university level. Electronics has a 20% share in
Brno’s economic output, and its two business
parks host companies like Acer, Honeywell or
Siemens.
company profile: Siemens
With 12k workers, Siemens is one of the largest
employers of the country. The near Brno
Siemens Electric Machines and Siemens
Electromotors are the leading units.
Central Bohemian electronics cluster
The capital city of Prague and its broader
metropolitan region is the home of the Czech
semiconductor, robotics, consumer electronics
industries and electronics higher education.

6. Poland
Poland is the 3rd largest electronics
manufacturing country in CEE.
International companies like Flextronics, Alcatel,
Jabil, Toshiba etc employ 53,000 people
nationwide. The electronics industry is especially
strong in the central regions of the country, the
Warsaw-Lodz-Bydgoszcz triangle represents the
main cluster. Specialised business parks like
„Crystal Park” closed to Bydgoszcz provide
electronics-oriented environment.
There are a focused Polish chamber of
commerce for electronics and telecom industries.
learn more about Poland electronics industry

7. Slovakia
Slovakia has a Poland-size electronics industry -
with the 15% of Polish population. Behind
automotive manufacturing, electronics is the #2
industry in the county.
Western Slovakia electronics cluster
The main cluster bordered by Galanta-Nitra-
Trnava-Bratislava, in the Western part of the
country. The leading companies are Sony,
Samsung, Foxconn and Tesla.
Eastern Slovakia provides much higher
unemployment, emerging infrastructure and
focused tech education for companies like
Panasonic.

8. Higher education
Almost all clusters have strong university
backgrounds, however there are some
anomalies. E.g the leading Hungarian universities
are located in Eastern Hungary, but there are
more electronics companies in the Western part
of the country. Or, in Poland, the second largest
city Krakow has a tremendous student population
(about 200k students!) but the local electronics
industry is modest.
The leading universities normally have a strong
corporate partnership programmes, and teach the
more or less latest technologies.

9. Emerging clusters
Estonia
5k employees in the small Baltic state, but! 14%
of total working population has engineering
degree (not electronics only)
Leading companies: ABB, Ericsson, Eolane
Western Romania
The Timisoara-Arad-Oradea-Satu Mare-Cluj
bordered area is located in the Northwesten part
of Romania, closed to the Hungarian border. The
motorway access of the location is solved by the
Hungarian M3 and M5 motorways, and by the
large-scale Romanian motorway developments in
the future.
Western Romania provides low labour cost level,
however in recent years wages are increasing
(annual average labour costs were approx.
€10,000)

10. Local supply chains
Governmental agencies in almost all Eastern European countries make relevant efforts to develop local supply chains. The
goal of these efforts to embed global companies into the local economies and leverage employment.
HIPA, the Hungarian governmental economic development agency's Subcontracting Department supports the local supply
chain developments of OEMs and EMS companies via forums, databases, direct search and financial tools.
The Czech governmental investment promotion agency, CzechInvest provides a terrific Electronics Sector Database, with
contact to all industry players, product portfolios, customer references and quality certificates.

11. Grants by the
governments
When seeking opportunities in Eastern
European electronics industry, do not forget
about the option of local manufacturing. The
regional industry is boosting because of the
world-class infrastructure, the closeness of
European markets, the flexible and low-cost
local labour pool. And when it's about
manufacturing, you can get great
governmental incentives.
The main topics when it’s about grants for
manufacturing: job creation subsidies,
training subsidies and cash grants.

12. Grants by
municipalities
You cannot imagine the creativity of Eastern
European mayors when it’s about investment
promotion. Some offers a one-year entrance for
all your future staff to the matches of local
basketball team (“it will support your recruitment”).
Others provide international school development
projects and family assistance to your expat
manager families.
The bravest local governments offer special
deals. E.g. the municipality of Hajduboszormeny,
Hungary, provides a free of charge industrial
property for 50 new jobs + a dedicated vice mayor
to manage your investment within the Hungarian
public administration. By the way, the location is
inside the top10 best cost effective regions of
Europe (ranked by Financial Times’ fDi
Magazine), so beside basketball tickets you can
gain pretty good deals on municipal level, too.

13. About us
Manufacturing Hungary Blog is an information source about the
manufacturing topics in Hungary and Eastern Europe. Our goal is to
support corporate site selection teams’ job, providing useful information.
Dr. Balazs Csorjan, investment promotion specialist, the former regional
director of Hungarian governmental investment promotion agency. Dr.
Csorjan has taken part in more hundred site selection projects - he
knows your questions.

14. If you liked this presentation,
please do not forget to share
it - maybe your partners will
like it, too.
Otherwise, do not hesitate to e-mail your questions: csorjan@m35businesspark.hu or download the file.
thnx a lot!