Electronics industry in Estonia
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The Estonian electronics sector
The beginning of the Estonian electronics sector dates back to 1907 when the first telephone factory was established. Today, with more than 250 companies and 12 000 employees, the electronics industry is one of the largest industrial sectors in Estonia and has shown constant growth over the past years. The success of the sector is attributed to its level of added value, efficient processes, highly responsive product development of electronic companies and participation in the globalised market.
93% of the Estonian electronics industry’s output is exported, giving 23% of all Estonian exports (2019). Main export destinations are the United States, Sweden, Finland, and Germany.
The manufacture of electronic and electrical equipment is divided into two sub-branches:
- Manufacture of computers, electronic and optical equipment makes up about 70% of the sector’s turnover. Activities of the companies range from Electronics Manufacturing Services to producing telecommunications, industrial, medical and automotive equipment and components (PCBs, supercapacitors, power semiconductors, transformers, cables, etc.). The largest companies operating in the sector are Ericsson Eesti AS (mobile network equipment), Enics Eesti AS (electronic components for industrial and medical equipment), Scanfil OÜ (telecommunications equipment), Stoneridge Electronics (automotive electronics), AS Eolane Tallinn (communications equipment) and FLIR (thermal imaging cameras, components and imaging sensors).
- Manufacture of electrical equipment makes up the remaining 30% of the sector. The largest companies in the sector are ABB AS (production of electrical distribution equipment and power generators), Ensto Ensek AS (electricity distribution equipment and control equipment), AS Konesko (electric motors and equipment), AS Draka Keila Cables (cables and cable harnesses), Amphenol (interconnect products), AS Glamox (lighting solutions) and AS Harju Elekter Elektrotehnika (electrical equipment for power distribution).
Electronics manufacture is dominated by local branches of international corporations managing large scale production for exports. A number of these companies also have their own development teams in Estonia or use local engineering services. Estonian companies offer mainly engineering services and are eager to develop innovative products and technologies. Good skills, flexibility and a highly efficient business environment make Estonian companies good cooperation partners. In general, companies established in Estonia benefit from simple labour and tax legislation combined with conservative economic policy. Modern ICT solutions make operating a business extremely quick and convenient, saving time and money. For example, a company can be started within 15 minutes without leaving your computer. Local value chains work well, starting with the development of an idea and the manufacture of prototypes up to the production of serial batches. This is the reason why companies such as Ericsson, ABB, Stoneridge Electronics, Scanfil, NOTE, Enics, Eolane and FLIR Systems operate in Estonia.
