Global supply chains and the ITA

Japan Electronics & Information Technology Industries Association

May 14, 2012 Geneva

Akihiro Tanii

1

What is JEITA?

2

Electronic Devices

Consumer Products

Electronic Components

Industrial Equipment

Principal

Product Areas

Others EDI-related Equipment, etc.

JEITA’s mission is to foster a digital network society for the

21st century, in which IT advancement brings fulfillment and

a higher quality of life to everyone.

3

Robust Growth in ITA Trade

0

0.5

1

1.5

2

2.5

3

3.5

4

(trillion:$)

(year)

$1.2 trillion

$4.0 trillion

Source: US International Trade Commission

>3 times

ITA and non-ITA total trade, 1996-2008

ITA product

>3 times

Non-ITA product

>2 times

1996 2008

ITA contributes to global economy

ITA contributes to quality of life globally

0

10

20

30

40

50

60

70

80

90

Mobile cellular subscriptions

1996

2.5%

2010 78.6%

4

Source: World Bank

(Per 100 people)

・ Access to disaster information

・ Medical services, etc.

5

ITA products aid disaster response

Urgent earthquake Alert information

Facility C

Facility A

Facility B

Alert information Control Center

Urgent earthquake Alert information

Urgent earthquake Alert information

Urgent earthquake Alert information

Magnitude 5 earthquake will strike in 15 seconds

Magnitude 5 earthquake will strike in 15 seconds

ITA supports global supply chains

6

Mobile phones

Signal processing

boards

Antennas

Speakers

Keyboard switches

Microphones

Liquid crystal modules

Assembled in

Brazil, China,

Chinese Taipei,

India, Japan,

Korea, Malaysia

Parts Main production country

Liquid crystal

panels

China, Chinese Taipei, Japan, Korea,

Singapore

Printed circuit

boards

China, Chinese Taipei, EU, India, Japan,

Korea, Malaysia, Mexico, Singapore,

Thailand, USA, Vietnam,

ICｓ

China, Chinese Taipei, EU, Indonesia,

Japan, Korea, Malaysia, Philippines,

Singapore, Thailand, USA, Vietnam,

Capacitors

China, Chinese Taipei, Indonesia, Japan,

Korea, Malaysia, Philippines, Singapore,

Thailand,

Resistors

China, Chinese Taipei, Indonesia, Japan,

Korea, Malaysia, Philippines, Singapore,

Thailand,

Connectors Japan, Malaysia, Philippines, Thailand,

Vietnam

Inductors China, Chinese Taipei, Japan, Korea,

Malaysia, Philippines, Thailand, Vietnam

Covers

Parts

Camera modules

Batteries

Brazil, China,

Chinese Taipei,

India, Japan,

Korea,Malaysia

Intermediate commodities

• ITA products are underpinned by multiple countries.

• Smooth trade is key.

• The major merit of the ITA in terms of actual trade is that ROCs are unnecessary.

• We hope to see countries around the world join the ITA.

7

ITA supports global supply chains

8

ITA contributes to innovation

Multi-

component

IC

Multi-

chip IC

Digital

Wireless

Network

Digital Network

Digital Media Digital Editing

Digital TVs

Video cameras/camcorders

BD/DVD recorders

and players

Car navigation

systems

Examples of products outside current ITA coverage

9

Conclusion

Need for strong and tangible results to mark

this 15th anniversary of the ITA.

The ITA has contributed to the advance of the global economy, higher

standards of living and innovation.

ITA expansion would boost the penetration of valuable ITA products,

contributing to healthier, safer and more affluent lives.

ITA product coverage needs to be expanded in line with technological

advance and regularly updated.

ITA expansion would benefit all countries via global supply chains.

With the WTO trade liberalization negotiations gridlocked, the WTO

system has been unable to catch up with innovation by industry.

10

Thank you for your kind attention.

Japan Electronics & Information Technology Industries Association