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.


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)


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)


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


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).


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


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


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.


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.


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


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!


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.


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


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


HIPAINCENTIVES OVERVIEW


THEY HAVE ALREADYCHOSEN US!

ELECTRONICS INDUSTRY HUNGARY - HIPA · 2016-11-29 · Electronics Industry in Hungary 7. IN ORDER...

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Transcript of ELECTRONICS INDUSTRY HUNGARY - HIPA · 2016-11-29 · Electronics Industry in Hungary 7. IN ORDER...