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US 3.3 billion GPS products from China – Taiwan

Global Sources’ China Sourcing Report: Global Positioning Systems (GPS) Devices shows mainland China and Taiwan are expected to manufacture a combined US$3.3 billion worth of GPS products in 2006—an increase of 20 percent year-on-year. Eighty percent of production is expected to be exported.

The 123-page China Sourcing Report provides production; technology, price and component supply forecasts for the GPS industry in Taiwan and mainland China. It features detailed profiles of 32 leading manufacturers compiled through factory visits, plus specifications for 112 popular export products.

Report publisher, Mark Saunderson, said: “Improvements in GPS accuracy, an increase in the number of consumer applications and lower pricing are contributing to industry growth in 2006.”

“Currently, Taiwan production focuses on handheld receivers, with production expected to top US$1.68 billion this year. Mainland China production consists mostly of in-vehicle systems, and is expected to reach US$1.62 billion by yearend.”

Taiwan has more than 100 GPS makers, and mainland China has approximately 30 suppliers. Production is concentrated in Taipei and Hsinchu in Taiwan, and in Shenzhen in mainland China.

Fifty percent of surveyed manufacturers plan to upgrade chipsets, firmware and software in the coming months. Many are adding support for wide area augmentation system (WAAS)—a system of satellites and ground stations that provide GPS signal corrections—and other functions to improve positioning accuracy.