The electronics industry in Central Europe: recent changes and future prospects

Political changes in the Central European countries since 1989 have led to a radical shake-up in the electronics industry in the region. This article shows how the former state monoliths in the region have been broken up or sold off, and profiles the emergence of new market-oriented companies. The low wage rates for assembly workers in the Czech Republic, Hungary and Poland make them a potential location for low-cost production close to the European Union. There is already clear evidence that German electronics companies are moving lower value-added activities to their Eastern neighbours.