ITEE Industry Dynamism in AP and Impact of

IT/E&E Industry Dynamism in AP and Impact of ITA 20 th June, 2013 Japan Electronics & Information Technology Industries Association 1

Contents 1. 2. 3. 4. JEITA “Incorporated Growth” by ICT “Global Supply Chain” by ICT Dynamism in Asia Pacific region 2

1. JEITA 3

JEITA’s mission is to foster a digital network society for the 21 st century, in which IT advancement brings fulfillment and a higher quality of life to everyone. Industrial Equipment Electronic Components Electronic Devices Consumer Products Principal Product Areas Others EDI-related Equipment, etc. 4

Benefits of Economic growth & Innovation Support “ITA products expansion”, and you will get an excellent opportunity to have… 1. “Incorporated Growth” by ICT 2. “Global Supply Chain” by ICT 5

2. “Incorporated Growth” by ICT 6

“Internet-connected Displays” are dominating ICT device market. Source: Source Fuji Chimera Research Institute 2012 7

If you don’t include “Internet-Connected Displays” in ITA, you will miss the “Growth” 70% 60% 50% 40% 30% 20% 10% 0% IHS i. Suppli Market Research, Feb 2013 2012 2015 2016 8

One Display Is Duty Free, One is Not Dutiable Duty free 9

Products outside current ITA coverage Video cameras/camcorders BD/DVD players Multi-chip IC Multi-component IC Digital Network Digital TVs Digital Media Digital Editing Car navigation systems Digital wireless network 10

Innovation and Inconsistencies ITA Duty Free Dutiable

More Inconsistencies ITA Duty Free Dutiable

Current feature of Blu-ray Disc Player Customer can enjoy the web contents as same as PC. interface 13

Current feature of Blu-ray Disc Player SD Disc Broadcasting USB Flash Memory HD Disc Home Network Net Services 2 nd Display Full Browser Apps External HDD Blu-ray Disc Player 14

3. “Global Supply Chain” by ITC 15

ITA supports global supply chains Parts Liquid crystal panel Main production country China, Chinese Taipei, Japan, Korea, Singapore China, Chinese Taipei, EU, India, Japan, Korea, Printed circuit boards Malaysia, Mexico, Singapore, Thailand, USA, Vietnam IC 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 Intermediate commodities Finished Products • Liquid crystal modules • Signal process. boards • Camera module DTV Mobile Phone Produced in Brazil, China, Chinese Taipei, India Japan, Korea, Malaysia Assembled in Brazil, China, Chinese Taipei, India, Japan, Korea, Malaysia

4. Activities in Asia Pacific region ～ Sony EMCS (Malaysia) ～ 17

Outline of Sony EMCS (Malaysia) • Multi Category, Multi Products, Multi Location, Multinational Workforce • # of employee : 10, 000 • R&D Center Headphone Home Audio (1. 4 M Units/Yr) (2. 7 M Units/Yr) LCD TV 6. 0 M Units/Yr) Blu-ray Player (6. 4 M Units/Yr) DMP (2. 4 M Units/Yr) Tuner (14. 4 M Units/Yr) 18

R&D Center in Malaysia R&D Office (KL Tec) R&D Center Outlook Global Sourcing Members EMC Site 19

Value Chain (E&E industry) R&D (Basic Research) (Product Design) R&D Manufacturing R&D (Basic Research) (Product Design) Manufacturing Mass production Sales MFG-driven Design Service Sales Service Value Creation ・ Quality ・ Productivity ・ Cost 20

Global Mother Plant World Wide Manufacturing & Quality Support Manufacturing Lead D 4 M Set Assy WWOPS creation / supply Jig modules creation Factory software supply Quality Design Quality improvement Product Safety Production Quality Market Quality Customer Service Other (KIT operation etc. ) Global Mother Sony OEM ODM KIT Engineering support Quality assurance / CS Parts sourcing Product control 21

Summary 22

Benefits of Economic growth & Innovation Support “ITA products expansion”, and you will get an excellent opportunity to have… 1. “Incorporated Growth” by ICT 2. “Global Supply Chain” by ICT 23

Thank you 24