ELECTRONICS INDUSTRY HUNGARY - HIPA · 2016-11-29 · Electronics Industry in Hungary 7. IN ORDER...
Transcript of ELECTRONICS INDUSTRY HUNGARY - HIPA · 2016-11-29 · Electronics Industry in Hungary 7. IN ORDER...
ELECTRONICS INDUSTRY
HUNGARYIN
OPENING DOORSFOR YOUR INVESTMENT
Published by the Hungarian Investment Promotion Agency, HIPA
All rights reserved © HIPA, 2016www.hipa.hu
ABOUT HUNGARY
THE ELECTRONICS INDUSTRYIN HUNGARY
LABOUR FORCE
LOCATION
HUNGARIAN INVESTMENT PROMOTION AGENCY (HIPA)
CONTENT
6
12
20
26
30
ELECTRONICSINDUSTRY
78%
65%57%
41% 40%
27%
HUNGARY Source: wiiw FDI Database
POLAND ROMANIA SLOVENIACZECHREPUBLIC
SLOVAKIA
Inward FDI stock in 2014 (percentage of GDP)
HUNGARY
ABOUT HUNGARYMAIN FIGURES
(Source: *HCSO = Hungarian Central Statistical Office)
AREA
93,030 km2
FORM OF GOVERMENT
PARLIAMENTARY REPUBLIC
TIME ZONEGMT + 1 HOUR
CURRENCYFORINT
(HUF)
GDP (PPP)€ 183,989 MILLION
(2014)
UNEMPLOYMENTRATE6.8 %
(2015, HCSO)
INFLATION-0.1%
(2015, HCSO*)
MEMBERSHIP IN INTERNATIONAL ORGANISATIONS
EU, UN, OECD, WTO, NATO, IMF, ECEU member: since 2004
CLIMATETEMPERATE
(similar to the rest of the continental zone)
RISK OF NATURALDISASTERSVERY LOW
OTHER MAJOR CITIES
Debrecen (203,506)Szeged (162,593)Miskolc (159,554)Pécs (145,985)Győr (129,372)
CAPITALBUDAPEST
1,757,618(as of January 2015)
POPULATION
9,855,571(as of January 2015)
Electronics Industry in Hungary 7
IN ORDERTO IMPROVE THE
BUSINESS CLIMATE, THE HUNGARIAN GOVERNMENT…
ABOUT HUNGARYBUSINESS ENVIRONMENT
INV
ESTM
ENTS
IN F
OCU
S
…created one of the most competitive FLEXIBLE LABOUR
CODEs in Europe(in favour of employers).
...has reduced the CORPORATE TAX RATE
to the lowest level in the CEE region.
…has introduceda FOREIGN-TRADE
FOCUSED foreign policyto attract FDI.
…has doubled the amount of
financial support forR&D ACTIVITIES in the 2016-2020
period.
...has reduced the PERSONAL
INCOME TAX
to 15%.
…introduced a new act on a practice based DUAL TRAINING
in favour of business needs.
...has entered intoSTRATEGIC PARTNERSHIP
AGREEMENTSwith numerous companies,
giving fast access to the government via workshops and regular consultations.
Electronics Industry in Hungary 9
EXPATS LIKE HUNGARYBudapest is a city full of surprises and wonders, with its lively centre, pretty parks, majestic river, tall church spires, and lavish spas. One of the most exciting cities in the world, Budapest is full of secrets, hidden spots to explore, and old favourites to revisit. This is the city where being bored is not an option. According to TripAdvisor, Budapest is offer-ing the best price-value ratio in the world.According to Condé Nast Traveler readers, Budapest is the second best city on earth.
INTERNATIONAL SCHOOLSExpatriates looking to stick with the curricula of their home countries can choose from a range of private international schools for their children. There are also many English, German or French public and private pre-schools for children aged from three to six. The school year starts in September and ends in June, and school buses are usually available at private schools. There are many opportunities to study in a foreign language at universities too.
EXPLORE THE COUNTRYSIDEHungary’s diverse countryside offers a wide range of outdoor activities: 11,000 kilometres of hiking routes; more than 2,500 kilometres of cycle paths; 17 golf courses; ten national parks; and many protected nature reserves for those in love with fresh air. The protected Puszta-region, the Great Plain, the romantic Danube Bend with its historic sites, and pretty baroque towns, such as Eger, attract visitors all over the year. Lake Balaton, the largest fresh water lake in Central Europe, is a perfect holiday resort.
2.BUDAPEST
IS THE
BEST CITYON EARTH
(Condé Nast Traveler,2015)
Electronics Industry in Hungary 11
ABOUT HUNGARYQUALITY OF LIFE
“25 years ago today, Electrolux has opted for Hungary. When the company group decided about the localization of their production capacities in Hungary, flexibility, quality and the availability of local expertise played an important role, as well. Our experience from the recent years shows that we have brought our new capacities to the best possible location since our Hungary-based factories have come to fill a central position in the European production of Electrolux."Dr. Sándor Gönczi, CEO, Electrolux Lehel Ltd.
THE ELECTRONICS INDUSTRYELECTRONICS STRONGHOLD
THE ELECTRONICS INDUSTRYIN NUMBERS
Did you know that…Hungarian researchers (Ottó Bláthy, Miksa Déri and Károly Zipernowsky) invented the modern transformer in 1885?
Electronicsaccount for
19.7%of the total Hungarian
manufacturing production
4%Share of
electronics of the GDP
HU
UA
RO
SRB
SLOHR
A
SK
Hungaryhas one of the most
productive electronics industry in the
CEE region€15.4BILLIONProduction
value($20.5 billion)
Electronics Industry in Hungary 13
Did you know that…Dénes Gábor was a Hungarian electrical engineer and physicist, most notable for inventing holography, for which he later received the 1971 Nobel Prize in Physics?
160,000Total numberof employees
in the industry
27.8%Share of electronics
in the total of Hungarian exports
93.3%Export ratio
THE ELECTRONICS INDUSTRYIN NUMBERS
Electronics Industry in Hungary 15
THE ELECTRONICS INDUSTRY ELECTRONICS STRONGHOLD
"Hungary created a business environment that supports the growth of the automotive sector. The knowledge and experience of the workforce in electronics manufacturing, as well as the engagement and ambition of the employees contribute to improving competitiveness, and allowing businesses to expand their operations. Infrastructure and developed logistics routes provide quick access and ensure smooth communication with customers in Western Europe. The seventeen years of operation behind us allow me to confidently say that it is worth building our future on local resources."Yasuki Matsui, Managing DirectorAlpine Electronics Manufacturing of Europe, Ltd.
ZalaegerszegELECTRONICSFLEXTRONICS
TabFLEXTRONICS
TamásiPHILIPS
Kaposvár VIDEOTON
MarcaliVIDEOTON
PécsHARMAN
JABIL
NagykanizsaGE
HONEYWELL
Sárvár FLEXTRONICS
Székesfehérvár DENSO
FOXCONNVALEO
VIDEOTON
Salgótarján MITSUBA
Nyíregyháza ELECTROLUX
TiszaújvárosJABIL
Nagykáta CLARION
Fót, Veresegyháza
GE
Jászberény ELECTROLUX
CeglédINFINEON
TörökszentmiklósVIDEOTON
DebrecenNATIONAL
INSTRUMENTS
HajdúnánásVIDEOTON
VácIBM
ZOLLNER
SzügyZOLLNER
BudapestCONTINENTAL
TEMICERICSSON
GEHUAWEISIEMENS
TYCO
SzombathelyJABIL
Komárom FOXCONN
Tatabánya SANMINA SCI
VeszprémVIDEOTON
DunaújvárosAIKAWA
Biatorbágy ALPINE
Sziget-szentmiklós
NCR
JászárokszállásROSENBERGER
JászfényszaruSAMSUNG
BudaörsGE
GyálPáty
ÓzdGE
JOHNSON ELECTRIC
KecskemétPHOENIX MECANO
FLEXTRONICS
MiskolcBOSCH
SANMINA SCISHINWA
HatvanBOSCH
JOHNSON ELECTRICLEAR
THE ELECTRONICS INDUSTRY ELECTRONICS STRONGHOLD
MAJOR ELECTRONICSINDUSTRY COMPANIES
BY LOCATION
Did you know that…a Hungarian physicist, electrical engineer and inventor gave the Thermographic camera (1929) and the Plasma television (1936) to the world? He was Kálmán Tihanyi, who also (co-)invented the modern cathode ray tube and completely electronic television in (1928).
Electronics Industry in Hungary 17
THE ELECTRONICS INDUSTRYSUCCESS STORIES
3.8BILLION
Foreign DirectInvestment
ROSENBERGERThe story of Rosenberger Magyarország Ltd. began in 2003. Bit-by-bit Jászárokszállás was expanded into the European Assembly and Logistics centre. Competencies were developed in close cooperation with the parent company, employees were trained and the quality management system, which has been certified, has proven itself during frequent audits. With about 1,650 qualified employees, Jászárokszállás has developed into a reliable competence centre and makes a considerable contribution to the growing turnover of the Rosenberger group.Rosenberger expanded its capacity with 250 new jobs in 2015. With this expansion Rosenberger has 2300 employees in the country.
Many multi-national firms have established suc-cessful electronics production sites in Hungary. International companies have been active in the
country and have been working closely with local com-munities for decades; to date, the total Foreign Direct Investment in the industry is €3.8 billion ($5 billion).
HONEYWELLHoneywell, a US-based company, was set to expand its manufacturing plant in 2014 with an investment of € 10 million. The company’s investment will create 109 new jobs. Nagykanizsa became the strategic centre of the company thanks to the development. Honeywell has 650 colleagues in Hungary.
SAMSUNGSamsung Hungary Ltd. opened a new plant in 2014 with an investment of $25 million in Jászfényszaru which created 75 new jobs in the country.The factory in Jászfényszaru has been expanding since its establishment in 1989. The production started in 1990 and the plant started exporting products three years later. The past 25 years has seen the production of over 62 million devices, including televisions and projectors.The factory is expecting to raise the production efficiency with the expansion. The new section is mainly dedicated to the production of televisions, led screens and plasma devices for export and distributing them in the countries of the European Union. Recently Samsung employs around 1800 workers in electronics industry in Hungary.
ALPINEJapanese electronics company Alpine invested 39 million USD in 2015 at its plant in Biatorbágy, on the outskirts of Budapest, and expects to double its production capacity by 2018 and create 500 jobs.Through the project the company is expecting to invest in new technology and install new production lines, which will enable it to increase the proportion of Hungarian suppliers it relies on. In overall the company employs 1000 people in Hungary.
650
1000
1800
2300
Electronics Industry in Hungary 19
The leading Hungarian universities offer engineering courses at the highest international standards. These institutions operate knowledge centres and function as
research facilities which work closely with industrial partners. Electronics and IT are the key focus areas.
GYŐR: Széchenyi István UniversityThe IT laboratory offers industrial simulation projects and engineering development services for the automotive industry.
MISKOLC: University of MiskolcCourses in energy engineering; mechanical engineering; IT engineering; and electronic engineering. Knowledge centre supported by Bosch, Electrolux, TVK, and Holcim.
VESZPRÉM: University of PannoniaThe IT department operates a medical IT R&D centre; an I&M software research centre; an infotech, biotech, and nanotech centre, and conducts IT research into logistics systems.
DEBRECEN: University of DebrecenMasters education in building and environment engineering. Research groups in areas such as building automation, electric vehicle development.
LABOUR FORCEEDUCATION
SPECIALIZED HIGHER EDUCATION IN ELECTRONICS RESEARCH
TO EXPAND HUMAN RESOURCE CAPACITIES FOR THE DEMANDS
OF THE INDUSTRY
VESZPRÉMUniversity of Pannonia
MISKOLCUniversity of Miskolc
PÉCSUniversity of Pécs
SZEGEDUniversity of Szeged
SZEGED: University of SzegedThe University has a technical faculty with 50 years of educational and R&D experience. The faculty has a practical training as well which based on extensive industrial relations.
PÉCS: University of PécsThe Faculty of Engineering and Information Technologies was founded in 1970. Today has more than 3,000 students. The 8 basic training programmes cover technical, artistic and information technology related fields of study in the following branches: architecture, civil engineering, environmental engi-neering, electrical engineering, information technology and architectural design.
GYŐRSzéchenyi István
UniversityDEBRECEN
University of Debrecen
BUDAPEST· Eötvös Loránd University
· University of Óbuda· Pázmány Péter Catholic University
· Hungarian Academy of Sciences· Budapest University of Technology
and Economics· Bay Zoltán Nonprofit Ltd.
for Applied Research
Electronics Industry in Hungary 21
LABOUR FORCEEDUCATION
BUDAPESTEötvös Loránd UniversityRegional Knowledge Centres (RKC) utilize R&D results. The RKCs cooperate closely with the industry to manage innova-tive projects focused on R&D at an international level, and to turn R&D projects into marketable products and technologies.
University of ÓbudaStrong engineering faculty, especially electrical engineering and mechanical and safety engineering. Operates a knowledge centre focusing on robot technology R&D.
Pázmány Péter Catholic UniversityThe IT Faculty’s Budapest research centre is engaged in nano-technology, nanoelectronics, designing and measuring micro-electronics systems, medical diagnostics, mobile platforms and systems, and more.
Hungarian Academy of SciencesThe Research Institute for Technical Physics and Materials Science focuses on areas such as nanostructures, microtech-nology and protonics. Budapest University of Technology and Economics: Higher education in mechanical and chemical engineering, electronics and IT, and transportation engineer-ing. Industrial cooperation in the areas of biometrics, medical engineering, communications and IT, automobile, mobile inno-vation. Also operates an IT innovation and knowledge centre.
Budapest University of Technology and EconomicsHigher education in mechanical and chemical engineering, electronics and IT, and transportation engineering. Industrial cooperation in the areas of biometrics, medical engineer-ing, communications and IT, automobile, mobile innovation. Also operates an IT innovation and knowledge centre.
Bay Zoltán Nonprofit Ltd. for Applied ResearchComprised of the Research Institutes for Technical Physics and Materials Science, the Institute for Material Science and Technology (laser technology, metals, polymers and com-posite technologies, sensor and instrument development), the Institute for Nanotechnology, and the Institute for Applied Tele-communication Technologies (ambient intelligence, integrated systems, sensor networks, intelligent transportation systems, ad hoc communication networks).
"Over more than 125 years, Siemens has developed a strong footprint and has contributed significantly to the economic and social development of the country with its expertise and manufacturing capabilities. We have committed, motivated and well-educated Hungarian colleagues, who ingeniously work for achieving excellent results on all levels in all fields –from skilled craftsmen to engineers, from business managers to software developers.”Dale A. Martin, President & CEO, Siemens Ltd.
Electronics Industry in Hungary 23
THE BOSCH GROUPEmploys approximately 11,000 people in Hungary, making automotive parts, power tools, security systems and home appliances in four production plants. The company established an R&D Development Centre in Budapest in 2013 (automotive technology) which is the company’s largest European R&D centre. The company and the University of Miskolc (central town of Borsod-Abaúj-Zemplén county, Northern Hungary) established the Bosch Department within the University to support practical-oriented education and research in engineering sciences, devoting special attention to mechatronic applications. Practical-oriented education is based on a modern laboratory system, with dedicated labs for pneumatics and hydraulics, sensor techniques, PLCs and modular mechatronics systems, as well as robotics and electrical driving systems. Bosch management intends to invest in the globally competitive knowledge of Hungarian engineers. A Strategic Partnership Agreement was concluded on 31 July, 2013 between the Government of Hungary and Bosch Hungary.
THE BUDAPEST UNIVERSITY OF TECHNOLOGY AND ECONOMICSInvolved in joint projects with Nokia, Cisco Systems, Ericsson, Flextronics, GE, IBM, and Siemens. Projects cover research and education, applied theory, design, manufacturing and testing of semiconductor devices, micro- and nanoelectronics, and energy transfer systems.
In recent years, a great number of international companies have developed a close cooperation with Hungarian educational institutes. The common aim was to support
the development of highly-skilled labour and to explore research, product development, and testing capabilities.
R&DIN HUNGARIAN ELECTRONICS INDUSTRY
DRIVING AUTOMOTIVE INDUSTRYEVOLUTION
Great innovation capacity available
+ Great research and
development potential.
Dedicated to innovation:double the number of
Government incentives for R&D activities
in 2016.
Electronics Industry in Hungary 25
LABOUR FORCEINNOVATION
LOCATIONLOGISTICS & INFRASTRUCTURE
VIV
VIIIV
VX
VII
COMMERCIAL CORRIDORS & INFRASTRUCTURE
LEGEND
existing
planned
MOTORWAYS IN HUNGARY M1: Budapest – AUTM3: Budapest – RO/UKR/SK
M5: Budapest – SRBM6: Budapest – PécsM7: Budapest – SLO
IV: Dresden – Prague – Vienna – Bratislava – Győr – Budapest – Arad – Bucharest – Sofia – Thessaloniki – IstanbulV: Venice – Trieste – Ljubljana – Maribor – Budapest – Uzhhorod – Lviv – KievVII: Vienna – Bratislava – Budapest – Belgrade – the Black SeaX: Salzburg – Ljubljana – Zagreb – Beograd – Niš – Skopje – Veles – Thessaloniki
PAN-EUROPEAN CORRIDORS CROSSING HUNGARY EXTENSIVE ROAD & RAILWAY
TRANSPORTATION NETWORK
HIGHLY DEVELOPED LOGISTICS &
TELECOMMUNICATIONS INFRASTRUCTURE
AT THE CROSSROADS OF FOUR MAIN EUROPEAN
TRANSPORTATION CORRIDORS
4
“After examining numerous possibilities, the leader-ship of National Instruments Corporation announced in December, 2000 that NI decided to open its first overseas manufacturing facility in Debrecen. Both the economic and scientific environment played a crucial role in the decision besides the logistics background and the sig-nificant fact that the local University constantly provides qualified workforce to the industry.”László Ábrahám, General Manager, National Instruments
Electronics Industry in Hungary 27
The Investment Sites Database lists nearly 700 green- and brownfield sites, industrial parks and offices throughout Hungary. It simplifies the task of matching investors’ needs to potential locations.Searchable by size, location, available infrastructure and incentives, the database is an excellent starting point for any prospective investor.
HIPA operates an internal database of industrial parks, investment sites, and industrial halls in Hungary. The Investment
Sites Database is one of the most comprehensive resources of its kind, the HIPA database is part of the information package for potential investors.
LOCATIONAVAILABLE INVESTMENT SITES
480GREEN- ANDBROWNFIELD
SITES
100OFFICES
110INDUSTRIAL
PARKS
MORE THAN
ARE WAITING FOR YOUR INVESTMENT
LOOKING FOR INVESTMENT SITE?HIPA WILL SUPPORT
YOU!
Electronics Industry in Hungary 29
BEFORE YOU MAKE A DECISION
WE OFFER YOU…
AFTER YOU HAVE CHOSEN
HUNGARY
PLEASE CONTACT US
HIPAOUR SERVICES
Address: 1055 Budapest, Honvéd utca 20. Customer service: [email protected]
Telephone: +36 1 872 6520Web: www.hipa.hu
We support your further expansion
and plans.
HOW DO WE SUPPORT YOUR
ELECTRONICS PROJECT?
...one-stop-shop management
consultancy services to address your business needs.
...meetings with HR & real estate agencies,
law firms and other consultants
based on your needs.
...tailor-made incentive offers and information
packages on the business environment,
labour market, tax regulations, etc.
...reference visits at companies that are
already established in Hungary.
... location search & evaluation
+site visits.
...assistance with your incentive
application.
We are open to your feedback and offer mediation
between government and business based
on your inputs.
Electronics Industry in Hungary 31
OUR SERVICESFOR
INTEGRATORS
FOROEMs / SUPPLIERS
FORSUPPLIERS
SUPPLIERLISTS
=Filtering
SUPPLIER LISTSby company
requests
B2B,SUPPLIER FORUM
=Personal encounterbetween potential
suppliers and producers
UNIVERSITY AND R&D COOPERATION
=Supporting
educational and R&D cooperation between
universities and suppliers
PARTNERSHIPAGREEMENT
=Cooperations and
common projects todevelop Hungarian
suppliers
CERTIFIED SUPPLIERDATABASE
=Online, interactivecertified supplier
database and virtualmarketplace
EDUCATION, TRAINING
=Professional trainings
in several fields (efficiency trainings,
benchmarking techniques, automotive
standards)
DEVELOPMENTOF ACTUALSUPPLIERS
=Training for the
Hungarian suppliers,and potential
suppliers
PUBLICATIONS,MARKET
INFORMATION=
Information about the current Hungarian
supplier base
EXHIBITIONS=
Appearance on Hungarian and
international exhibitions and
fairs
Electronics Industry in Hungary 33
HIPASUPPLIER DEVELOPMENT
The maximum available aid intensity decreases if the investment is a large investment (exceeding €50 million): 50% of the maximum aid intensity determined in the regional aid map is available for investment between €50 and €100 million, with 34% of the maximum aid intensity for investment over €100 million.For information on up-to-date and individual incentive packages please contact HIPA directly.
Regional grants are the most typical forms of incentives for greenfield / brownfield investments or reinvestments. The maximum amount of regional incentive is shown on the regional aid intensity map. The map above illustrates that regional aid available for investment for a large enterprise may be up to 50% of the eligible costs of the investment, depending on the region. For investments not exceeding €50 million, the maximum intensity ratio can be increased by 10 percent for medium-sized and by 20 percent for small enterprises.As a member of the European Union, Hungary’s
regulations on incentive opportunities are in accordance with the EU rules. One
of Hungary’s competitive advantages over other countries in the region is the Government’s strong commitment to increase the competitiveness of SMEs and large enterprises in Hungary.Alongside the regulatory tools that contribute to the competitive business environment of local companies, Hungary offers wide-ranging incen-tives to facilitate foreign direct investments and reinvestments by local enterprises. Subsidies may be granted as regional aid or specific aid, such as R&D subsidies.
Investors may apply with their suppliers for a VIP Cash Grant together.
GOVERNMENT INCENTIVES
SOUTHERNTRANSDANUBIA
CENTRALTRANSDANUBIA
WESTERNTRANS-
DANUBIASOUTHERN
GREAT PLAIN
CENTRAL HUNGARY, Budapest
NORTHERNGREAT PLAIN
NORTHERNHUNGARY
Pécs
Szeged
Debrecen
Miskolc
Győr
Székesfehérvár
25%
35%
0 / 20 / 35%
50%
CASH SUBSIDIESfor investments,
training, job creation
and R&D
TAX INCENTIVESreduction of
corporate tax, social tax, or for
encouraging R&D activities...
LOW-INTEREST LOANS
SPECIAL INCENTIVES
of the free enterprise zones
THESE INCENTIVES INCLUDE, BUT ARE NOT LIMITED TO
Electronics Industry in Hungary 35
HIPAINCENTIVES OVERVIEW
Electronics Industry in Hungary 37
THEY HAVE ALREADYCHOSEN US!