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Dongguan Grows to a World Centre of Computer Parts
Dongguan, with an area of over 2,000 square kilometres, is now home to 2,800 3C (consuming electronics product, computer and communication) businesses, with the figure growing by several hundred each year.
Dongguan-made 3C products own a large share of the international market. It produces 40 per cent of the world's hard disk heads, cases and semis. Almost one of every three disk drivers, and one of every five scanners and mini-motors are made in the southern city.
By simply strolling around the city, a purchaser can easily accumulate at least 95 per cent of the installation parts required for a complete computer.
An IBM senior official said Dongguan has become the purchase base of world's computer giants. If a traffic jam occurred between Dongguan and Hong Kong, he jokingly added, 70 per cent of the computer assembly businesses around the world would be suffering a supply shortage.
Domestic computer giants, such as Legend and Founder, have established factories to raise the reputation of Dongguan products.
Founder's production base, located in the area, manufactures 3 million computers annually.
Finland-based Nokia increased its investment by US$20 million this year to build its second production line in Dongguan, making the city Nokia's largest producer of mobile phones in the world. Output value is expected to surpass US$1 billion this year.
The most attractive aspect of Dongguan is that it is the largest producer of computer accessories in the world, said a representative of Nokia.
The spokesman said that Nokia plans to invest another US$500 million in the city, which it considers the most ideal place for IT investment.
Dongguan has the facilities to host large-scale international fairs for electronic products. Purchasers from all over the world made orders worth over US$700 million at a computer fair last October.
More than 3,000 overseas purchasers, including Microsoft, IBM and Dell, from over 50 countries and regions, signed 216 contracts within six days worth US$1.182 billion. Of this amount, US$715 million is to be used to buy computer accessories and products produced in Dongguan.
The international exposition, the first ever held by Dongguan, attracted 300,000 visitors to the southern city.
Dongguan hosted a similar exposition last year that was designed to increase awareness among local residents of the city's progress in 3C.
Mico Chung, chairman of NOVA International Holding Co said the 3C Expo 2000 has the potential to be among the world's four largest expositions following COMPEX of the United States, CEBIT of Germany and COMPUTEX of Taipei of China.
"What Dongguan lacks is celebrity," Mico said, "and the exposition is designed to forge a sound image of Dongguan in the world."
Previously, Taiwan was the hot spot for computer processing and manufacturing. But now, even executives from Taiwan bring their management and customers to Dongguan, Chung said.
Dongguan's magnetic pull has attracted 20 prestigious universities, such as Tsinghua and Peking Universities, to jointly build a science-tech centre in the area.
Major General Cao Bingjin, president of the National Defence Science and Technology University, said the city would rapidly turn laboratory achievements into competitive products with help from the universities.
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