The Irish electronics industry sector is an important part of the Irish economy. It is underpinned by leading technology and innovation, which has made Ireland one of Europe’s key locations for manufacturing research, and development. The sector benefits from tariff-free access to the European Single Market through its participation in the EU’s free trade agreements with third countries like Korea and Mexico. However, this arrangement has come at a cost: namely, domestic content requirements must be met by any company wishing to export goods from Ireland into these markets.
Domestic content requirement
The electronics industry sector is an important part of the Irish economy, accounting for approximately 2% of GDP and 10% of manufacturing output. The sector also supports large numbers of jobs across Ireland. Domestic content requirement for the electronics industry sector. In order to aid Ireland’s development as a global hub for international electronics companies, there are certain domestic content requirements that must be met by suppliers who wish to export goods from Ireland to other countries under this tariff exemption. These include:
- at least 50% of components must be manufactured in Europe;
- where possible, components should be sourced from within the EU Single Market; and
- if it cannot be sourced within these parameters then they must come from countries with which Ireland has signed a free trade agreement (FTA).
Ireland has signed a number of FTAs in recent years, including with Canada and Singapore. However, it is important to note that these agreements do not cover all the countries from which components can be sourced (for example, China is not covered). In addition, some suppliers may choose not to source their goods within Europe for reasons such as cost or quality.
Tariff exemption for certain imports
If you’re a business in the electronics industry sector, there are some exemptions from tariffs that may apply to your imports. These include Certain products used in the manufacture of semiconductors and other electronic components (HS Code 8541). Parts and accessories for use in manufacturing semiconductors, integrated circuits, printed circuit boards, and other electronic components (HS Code 8542)
Parts and accessories for use in the manufacture of telecommunications equipment, including mobile phones (HS Code 8543) Parts and accessories for use in the manufacture of medical equipment, including x-ray machines (HS Code 8544) Certain products used in the manufacture of light emitting diodes (LEDs), organic light-emitting diodes (OLEDs) and photovoltaic cells (HS Code 8545.
Summary of conditions of export
The electronics industry sector is a key contributor to the Irish economy, contributing over $14 billion to GDP and employing over 50,000 people. The sector is underpinned by leading technology and innovation, which has been supported through Government investment in education and research institutions such as Dublin Institute of Technology (DIT), University College Cork (UCC), and Tyndall National Institute. The sector has been a key driver of Ireland’s economic growth, which has averaged over 4% per annum in recent years. The Government will continue to support the industry as it grows and develops in order to ensure that this success is sustained into the future.
An important part of the Irish economy
The electronics industry sector is an important part of the Irish economy, and it contributes significantly to our society. It is one of the largest sectors in Ireland, employing over 40,000 people directly or indirectly (2016). The sector has also been identified as a major contributor to economic growth in Ireland by IDA Ireland and Enterprise Ireland, who have set out ambitious targets for increasing exports from this industry over the coming years. The overall aim of this report is to provide a detailed overview of the electronics industry in Ireland, including its current performance and future prospects.
The sector is underpinned
The electronics industry sector is a major employer, with approximately 30,000 people employed directly in the sector and many more indirectly through related industries. It is also a significant exporter, contributing over 5% to Ireland’s total goods exports in 2016 and 2017. The sector’s importance goes beyond its size it serves as an important customer for other Irish businesses across a range of sectors including manufacturing, services, and construction. For example:
- Over 80% of the components used by the semiconductor industry are produced domestically;
- 90% of all printed circuit boards (PCBs) used in Ireland are made here;
- The majority of electronic devices manufactured here incorporate imported parts sourced from companies based around Europe or further abroad
and The sector’s exports are valued at approximately €1.5 billion annually, contributing over 5% of total goods exports in 2016 and 2017.
Conclusion
The electronics industry sector is an important part of the Irish economy. The sector is underpinned by leading technology and innovation, with many companies having world-class expertise in areas such as software development, semiconductor design, and manufacturing, telecommunications equipment production, and services provisioning.