TE grows bigger confidence in China market
Having a presence in China since 1988, technology and manufacturing giant TE Connectivity Ltd (TE) envisioned greater opportunities in China along with the country’s industrial upgrade and deepening of the Belt and Road Initiative.
In the fiscal year ending September 29, 2017, TE generated US$2.4 billion revenue in China, accounting for 18 percent of the company’s global revenue. Globally, TE's net sales were US$13.1 billion in fiscal year 2017, up 7 percent year-over-year with reportable operation in Transportation Solutions, Industrial Solutions, and Communications Solutions.
“We continued to leverage our global presence and market-leading products to deliver strong results in China.” said Reggie Lai, Vice President and General Manager, TE China, “We upgraded own factory and research capabilities, and joined innovation of local manufacturers and entrepreneurs.”
China has emerged as TE’s important strategic market with the development of full-spectrum local capacity across the functions of design, research and development, engineering, manufacturing, supply chain, and sales. TE’s commitment in China has also strengthened along with the market growth, especially in the auto sector.
Latest data showed brisk sales of new energy vehicles in China in November, with annual sales set to exceed 800,000, as the government’s eco-friendly policy shows effect. Sales of China’s new energy vehicles surged over 80 percent year on year in November to 119,000 units, the China Association of Automobile Manufacturers said. TE as an upstream supplier, not only works with diesel powered car makers but also helps development for safer and stable new energy cars with its supply of connectors and sensors. In 2017, TE expanded production capacity of its automotive business, under-scoring the company’s long-term strategy of increasing investment in China.
“We hope to see more investment in R&D and innovation, which will enable China to expedite the transition to a knowledge-based economy and a great manufacturing country,” said Reggie. “I’m very excited about the breadth and depth of China’s digital transformation, as well as the mass opportunities in enhancing productivity, driving innovation and improving people’s livelihood.”
Contributing to China’s industrial upgrade, TE has developed connectivity solutions for China’s homegrown C919 airplanes, as well as Fuxing train, China’s fastest trains. TE also served as a partner in China’s telecommunication innovation alliance for 5G technology initiated by China Mobile.
TE has supported China’s call for innovation and entrepreneurship by helping Chinese start-ups to mass produce underwater industrial robots and the world’s first USB type-C linear power for computer audio.
On the latest DJI model Spark debut in July this year, TE's sensor helps the drone to fly steadily and stabilize in strong wind. The sensor is small enough to fit into the drone, sensitive enough to detect tiny changes in atmospheric pressure, and smart enough to calculate altitude based on the data.
Over the next a few years, service sector and consumption were expected to play a bigger role in China’s economy, while high technology and advanced manufacturing industries will maintain rapid growth.
“TE projects strong business performance in China,” Reggie said. “With China’s economic transition driven by innovation, we see many more opportunities to deepen our partnerships with Chinese customers with early design-in and co-creation.”
Belt and Road Initiative
The Belt and Road initiative was written into the CPC charter this year, and was seen providing new frontier for global companies to further enhance businesses and cooperation with China.
Reggie said under the initiative, TE’s team in China will be more integral to the global business given the vast geographic coverage and capital investment potential.
“Economies and societies along the Belt and Road should benefit as most projects under the initiative are concentrated in utilities, transport, construction, social, telecommunications, energy, and environmental sectors,” Reggie said. “These investments can certainly drive economic growth and improve the livelihoods of the large population in the region.” That reflects TE’s vision to help the world to build a safer, sustainable, productive and connected future, both in China and abroad.