The beginning of Estonian electronics sector dates back to 1907 when the first telephone factory was established. Today, with about 230 companies and 12 000 employees, 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 globalised market.

84% of Estonian electronics industry’s output is exported. Main export destinations have traditionally been Sweden and Finland – their share is 40% of total exports and is explained by strong links between foreign companies and their Estonian subsidiaries. Lately, however, Germany and the USA, have emerged as our key markets.

Manufacture of electronic and electrical equipment is divided into two sub-branches: Manufacture of computers, electronic and optical equipment makes up about 75% of the sector’s turnover. Activities of the companies range from Electronics Manufacturing Services to producing telecommunications, industrial, medical and automotive equipment and components. 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).

Manufacture of electrical equipment makes up the remaining 25% of the sector. 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) and AS Draka Keila Cables (cables and cable harnesses).

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 local companies offer mainly engineering services and are eager to develop innovative products and technologies. Good skills, flexibility and a highly efficient business environment makes 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 from your computer. Local value chains work well, starting with 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.

 

Electronics industry in Estonia

Electronics industry in Estonia

Electronics industry in Estonia

Electronics industry in Estonia