Just over a decade ago, when someone mentioned "multinational corporations" (MNCs), you would invariably assume the conversation was about a United States or European company that was something the size of IBM. However, an Asian brand of MNCs has emerged in recent years, and that label is just as likely to remind you of Samsung, LG, Asus or Acer.

And just over a decade ago, when someone mentioned investing in Asia, you would assume the money would end up in China. Most of Taiwan's computer industry is now located in China. Name one company and you are likely to find at least its sales office in China.

While that country continues to lead foreign investment, European, Japanese, United States, South Korean and Taiwan companies have been investing across the region. South Korea, Malaysia, Taiwan and Singapore are among the top 10 countries in terms of production, according to In-Stat. A recent report from In-Stat predicts that the electronics industries in Thailand, Indonesia and the Philippines will continue to attract foreign investment.

But perhaps the fastest rising star in the region is India. In-Stat estimates that its electronics production grew by 9.7 percent in 2005, after two years of over 16 percent growth. The firm expects that an improving business environment will take that country's output from about $10.6 billion in 2005 to over $35 billion by 2010.

India's National Association of Software and Services Companies (Nasscom) predicts that software services companies in the country will have a $40 billion market opportunity in engineering services by 2020, according to a study released last month (see Offshore engineering revenue to surpass Rs.1,85,760 crore).

The report, prepared by Nasscom and management consulting firm Booz Allen Hamilton, found that demand for designing, engineering parts, virtual testing and embedded software has been rising from global customers. The report predicts that global offshore engineering investments will reach $150 billion to $225 billion by 2020, and that India could get as much as a 25 percent share.

Many companies have announced new or additional expansion plans in India. IBM Corp. will invest $6 billion in India over the next three years to tap the domestic market and ramp up its other operations (see IBM to invest Rs.26,850 crore in India). Dell is reportedly scouting for a place in India to set up manufacturing (see Dell seeks location for India plant). Intel wants to set up an assembly-and-testing facility (see Intel keen on setting up ATMP plant in India). The company, which has invested $750 million to date, plans to pump in $1 billion in R&D and market development over the next five years.

And a whole ecosystem of ancillary industries is evolving. SAP announced in August that it will invest $1 billion in India over the next five years, with about $38.4 million allocated to R&D facilities. With foreign companies going to India and local companies expanding, SAP is seeing rapid growth in demand for its software products.

The expanding business has spurred the demand for engineers and greater expertise (see 2,000 new hires join Infosys in one day). Indian companies are resolving the HR challenges in several ways. Infosys this year hired 126 graduates from 82 U.S. universities. The Infosys Mysore Development Center can train 4,500 engineers, and has 58 training rooms, 183 faculty rooms, a cyber cafe and a library. Flextronics Software Systems is setting up its own university to develop skills that more closely match its requirements (see FSS starts Uni to ensure quality engineer supply). And several EDA companies have established programs at various universities in India.

While China and India dwarf the pace of industrial growth in Asia, the trend is unmistakable throughout the region. Asian companies no longer focus their exports, operations and marketing exclusively on the United States and Europe. Since its inception in 1987, this publication has seen the emergence of a vibrant regional electronics business environment. The kudos for this achievement indisputably goes to you, the electronics engineer, the true enabler of technologies and the builder of the electronics industry.

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