Equipment and components Raw material for electronic components Medical equipment technology Consumer electronics and office equipment Embedded systems Nanotechnology Other

Overview of the Dutch Electronic Industry

The Dutch aptitude for electronics is hardly top of mind with a world that equates electronic genius with the Japanese. But in fact it was the electronic innovativeness of the Dutch that has given the world modern favourites such as wifi, the CD and the DVD. Bluetooth was the invention of Dutchman Jaap Haartsen while working for Ericsson. And high-tech systems from Dutch companies are used in 90% of all silicon chips produced worldwide.

The Dutch electronics industry employed approximately 90,000 people in 2003 and generated total revenues of around EUR 20 billion. The industry hit by the global recession; in 2005 marked a reversal of fortune and the industry grew again in 2006. EU exports of passive, active, electromechanical components stands at EUR 2206 Million compared to European countries, particularly Germany, the Dutch industry is relatively small. However, The Netherlands leads in EUexports of electronic assemblies at EUR 7,277 million. ( 2005). Dutch imports of electronic components (excl. Assemblies) in 2005 recorded EUR 1,828 million and imports of electronic assemblies in 2005 was leading at EUR 7,496 million.

Dutch focus in comparison to the Japanese is not on quantity but quality in a number of specialised areas such as measuring equipment, electronic components, medical products and office equipment. The Netherlands has also launched a major initiative in the area of embedded systems and nanotechnology. Point-One, as the initiative is called, is a public-private partnership that includes the largest Dutch electronics businesses, academia, specialised SMEs and European (research) partners.

The Netherlands boasts of a densely-populated and thriving electronics ecosystem, in which the government works closely with universities, specialised research institutes and the private sector.

Specialised R&D programmes, particularly in embedded systems and nanotechnology, are resulting in innovations, patents, products and spin-offs. A valuable feature of the Dutch electronics ecosystem is that powerful multinationals like Philips and ASML work closely with smaller, specialised SMEs, creating a competitive combination of R&D funds and innovative ability. According to research conducted for the Institute of Electrical and Electronics Engineers, ASMI, a global producer of chip making equipment, was the most-innovative company in the Netherlands in 2005, based on the number of patents. By registering more than 100 patents in 2005, it was also the only non-US company in the top 10. Philips Research, part of the Philips Group, is one of the world's major private research organisations. In 2005, Philips had the largest number of international patent applications, both at the World Intellectual Property Organization and the European Patent Office.

Sri Lanka imports various kinds of electrical machinery and machinery parts from the Netherlands. Netherlands, as one of the significant and most innovative producers and exporters of machinery products, can very easily cater to Sri Lanka's growing market for these products. Imports of electrical machinery and parts have shown significant increase in the last few years. The Netherlands trade potential extends to the areas of, inductors, parts of inductor and transformers, electric magnets, electric switch protectors, parts of electric motors and generators, electric control distribution boards, parts of electric magnet and insulate winding wire.

Netherlands also has high trade potential in the following segments of specialized medical and electronic equipment; parts and accessories for radiation apparatus, electrostatic photocopiers, micrometers, instruments and appliances for medical purposes, parts and accessories of materials for testing equipment, automatic regulating/controlling equipment, wheelchairs, optical fiber, parts of vacuum pumps, filtering/purifying machinery/parts, moulds for rubber and plastic and bearing parts.

The Netherlands : leading suppliers of electronic components

Active components 8 %, Electromechanical components 5%,Electronic comp (excl elec ass) 6%, Electronic assemblies 12% to the European Union.

Dutch expertise & competitive advantages in the Electronic sector

• Equipment & components
  • ASML - power behind the semiconductor industry
  • ASMI - semiconductor processing equipment
  • FEI - Nanoscale microscopes
  • Bronkhorst - flow meters and controllers
  
  
• Medical technology
  • Philips Medical Systems - from X-ray to nuclear medicine
  • Delft Instruments - cancer treatment and ultrasound
  • Host of international players - adding to the ecosystem
  
  
• Consumer electronics, office equipment
  • Philips - global consumer electronics giant
  • TomTom - cool and effective GPS systems
  • Tulip Computers - home grown computer systems
  • Océ - professional printing systems
  
  
• Embedded systems
  • Around 230 producers, 1000s of users
  • DevLab, joint R&D laboratory
  • Small firms, big innovations
  • Chess - from wheelchairs to control systems
  • Montium - flexible and energy-efficient processor
  • ARS - Intelligent transport systems
  
  
• Nanotechnology
  • 80 companies, 20 research institutes, EUR 500 million R&D
  • Vibrant and globally significant partnerships : NanoNed, MicroNed BioMaDe, MESA+, Process on a Chip
  • Nano companies with mega potential : Mapper Lithography, Medspray Lionix

Trends in production

• Dutch production of components has become highly labour-extensive as a result of outsourcing labour-intensive production and of the use of high-tech machinery of some prominent Dutch machinery producers. The outsourcing of labour could be an area of interest for the Sri Lankan market with the local governments impetus on development and promotion of the electronics sector, which has also been identified as a thrust industry since 1995 to promote Foreign Direct Investment (FDI).

• According to industry experts, Dutch companies remain competitive, due to several advantages, such as short communication lines and joint development and improvement.
• Dutch companies are becoming more favourably disposed to considering business partnerships with suppliers from developing countries.
• The product categories that are considered most to source in DCs include sensors and microsystems, power supplies, cables, capacitors, electronic protection devices and resistors. On the whole there are good opportunities for high end components, whilst there is fair expectation of opportunities for passive components in general, provided that quality improves.

Sri Lanka's competitive advantages in the Electronics Sector

The government of Sri Lanka has given the highest priority for the development and promotion of the electronics sector, which has also been identified as a thrust industry since 1995 to promote Foreign Direct Investment (FDI). Under the thrust industry scheme, companies investing in the electronics industry are offered a package of attractive incentives and concessions.

• Availability of high quality base raw material for electronic products (extensive mineral deposits).
• Access to a pool of technical and professional human resources at competitive wage rates.
• Attractive incentives with electronics identified as a thrust industry.
• Good infrastructure.
• Special electronics park.
• R & D Facilities.
• Competitive wage rate