Future Development of Asian Electronics Industry May 17, 2004 Japan Electronics & Information Technology Industries Association

Current status of Asian Electronics Industry

World economic comparisons by region GDP is/ will be increasing remarkably in East Asia. The amount of trade is also increasing. GDP is/ will be increasing remarkably in East Asia. The amount of trade is also increasing. Notes: East Asia includes China, Korea, Taiwan, Hong Kong, Singapore, Thailand, Malaysia, Indonesia and Philippines. Shares of the world GDP by region East Asia (5.4%)East Asia (15.9%) Japan (13.9%) Japan (9.6%) U.S.A (26.4%)U.S.A (18.5%) Others (29.8%) Others (36.6%) Western Europe (24.8%) (1990) $21.14 trillion (2010) $49.89 trillion Sources: World Bank, World Table 1994 Economic Planning Agency “Annual Report on National Accounts

Production Share of Major Electronics products by countries and region (2004-forecasts) Source:Marketing Study Committee, JEITA

Production Results & Estimates for the Japanese Electronics Industry \ billions Domestic Production by the industry 25,393 22,725 25,035 22,832 20,483 18,034 19,296 20,314 estimates Source: results- METI, estimates- JEITA

Japanese Outward Direct Investment into Asia of Electrical & Electronic Industry Source: Ministry of Finance, Japan 100 million yen 1,243 1,219 1, ,018 1,439 2,388 2,059 2, ,054 1,5811,593 1,093 Value: Asia Total

For Future development of Asian electronics industry - challenges and opportunities 1.Working towards the WTO new round for establishing global rules 2. Promotion of Economic Partnership in Asia FTA (free trade agreement) / EPA (economic partnership agreement) 3. Effort to environmental issues

Working toward the WTO new round for establishing global rules 5th session of the WTO Ministerial Conference at Cancun Main Issues : Agriculture, Non-Agricultural Market Access Singapore Issues : investment, competition, transparency of government procurement and trade facilitation Successful Conclusion by January 1, 2005 Requesting Elimination of Tariffs on Electronics Products International consensus on the need for market liberalization in electronics Requesting Elimination of Tariffs on Electronics Products

Strengthening of Economic Partnership in Asia The amount of trade and investment with East Asia is increasing Japan East Asia ASEAN10+China, Korea, Taiwan, Hong Kong The Shares of East Asia - Export 40% - Import 41% - Direct Investment 26% Note: Figures by METI, 2000 Importance of Economic Partnership Agreement

Effort to Environmental issues of JEITA ・ Reduction of CO2 emission ・ Recycling ・ Energy Conservation ・ Management of Chemical Substances