Germany is the leading destination market for greenfield electronics FDI, while the US is the top source market. GlobalData’s electronics foreign direct investment (FDI) report highlights the current trends in electronics foreign investments. Buy the report here.
Between 2019 and 2022, the electronics sector was the fourth largest FDI sector in terms of the number of greenfield investments. The electronics sector accounts for 5.8% of global greenfield FDI projects.
Greenfield foreign direct investment is when a company invests abroad to establish a new physical presence or expand an existing operation. Greenfield investments create jobs and/or involve a capital investment into the foreign location. Other forms of FDI, such as mergers and acquisitions, are not included as part of this definition.
Combined, the top ten destination countries account for 57% of total electronics FDI projects.
The leading destination country for electronics FDI is Germany. The US, China and India are also popular electronics investment hubs.
According to GlobalData’s FDI Projects database, China-based companies were the leading source of greenfield electronics investments into Germany.
With respect to outbound FDI, the US was the leading electronics source market. US-based companies held a 18.9% share of total outbound electronics FDI projects. Germany, Japan, China and France are also top source markets for electronics FDI.
To further understand global electronics foreign direct investment trends, buy the report here.