In 1907 the first telephone factory was founded in Estonia. Electronics is one of the largest industrial sector
in Estonia with over 200 companies and 11 000 employees. Large international corporations offer mostly large-scale
production for exports while smaller local companies offer engineering services
and develop innovative products and solutions.
Manufacturing of electronics and electrical equipment is divided into two sub-branches:
Manufacturing of computers, electronic and optical equipment forms approximately 75% of sector turnover.
The activities of companies range from Electronics Manufacturing Service to producing telecommuniation,
industrial, medical and automotive equipment or components.
The largest companies are
Ericsson Eesti AS (mobile network equipment),
Enics Eesti AS (electronic components for industrial and medical equipment),
Scanfil OÜ (telecommunications equipment)
and Ordi AS (computers).
The manufacture of electrical equipment forms the remaining 25% of the sector.
The largest companies are
ABB AS (production of electricity distribution equipment and power generators),
Ensto Ensek AS (electricity distribution equipment and control apparatuses),
AS Konesko (electric motors and equipment),
and AS Draka Keila Cables (cable and cable harnesses).
95% of Estonian electronics industry's output is exported. The main export destinations are Sweden and Finland –
their share is 60% of total exports and is explained by strong links between foreign companies
and their Estonian subsidiaries.
Estonian-owned companies are mostly small-size companies that provide electronic engineering services.
A number of foreign-owned production companies also have their development teams in Estonia.
Estonia's strengths are its good overall science and IT skills and the broad range of talent and engineering excellence.
This is combined with the flexibility and adaptness to respond to changing needs.
In general, companies established in Estonia gain from simple labor and tax legislation combined with conservative economic policy.
Modern ICT solutions make running a business extremely quick and convenient, saving time and money.
For example, a company can be established within 15 minutes and without leaving your computer
Local values chains are functioning, starting with the development of an idea
and the manufacturing of prototypes until the production of the first serial batches.
This the reason why companies such as Ericsson, ABB, Stoneridge Electronics, Scanfil,
NOTE, Enics, Milectria and FLIR Systems operate in Estonia.