The electronics sector in Ireland continues to offer innovative products and services despite the growing level of competition from lower-cost locations abroad.

Productivity, as measured by sales per employee, has risen dramatically over the past number of years, by as much as 44 per cent between 2000 and 2002. The reason for the substantial increase is that Ireland is rapidly moving up the value-added chain with increased investment in research and development leading to the production of higher value-added products.

Ireland is home to many of the world’s largest manufacturers of computers and other electronic-based equipment. An estimated 50,000 people work in electronics, located in about 300 companies. It is a vibrant and hugely valuable sector, both in terms of revenue, with an estimated 2003 turnover of €2 billion, and jobs.

The manufacture of electronic products is a thriving business, and about 100 Irish firms are making everything from electronic data processing systems to access and process control equipment and communications equipment.

There is substantial computer manufacturing capacity in Ireland, with Dell, the world’s leading PC maker, based there, along with Apple and IBM.

The development of the indigenous electronics sector has been greatly boosted over the past decade or so by the growing presence of multinational companies in Ireland. The Irish firms supplying such multinationals have benefited greatly in terms of developing expertise and stringent quality standards.

Another important part of the electronics sector is the sub-supply firms. There are about 100 such firms, located throughout Ireland, involved in a variety of work such as box builds, component making, plastic fabrication and tool-making. Contract manufacturing is another area that is increasing in importance in Ireland.

The Irish government and Enterprise Ireland have focussed on ensuring that Ireland further improves its cost competitiveness. One strategy is the push to increase the amount of high value research and development work taking place. For example, Enterprise Ireland is funding the application of new technologies in the electronics sector, such as photonics, to assist firms to maintain their competitiveness while offering new services and products to their clients.

One of the great assets the electronics sector has is its flexibility, and its ability to respond rapidly to changed market conditions. Irish companies can, and do, adapt to demands for new products and services very quickly. Even in the downturn of the past number of years, many Irish electronics companies continued to grow, through the development of leading-edge products.

The Irish electronics success stories include iQon, Magnetic Solutions and XSIL, as well as dynamic young start-ups such as Xonen, Eblana and Firecomms.