In recent years, the electronics industries in some Idcs have become a focus of attention, due to their success in creating employment and promoting exports. This article assesses the future of the Asian electronics industry, distinguishing the early entrants, such as South Korea, Taiwan, Hong Kong and Singapore, from the latecomers, such as Malaysia, the Philippines, Indonesia and Sri Lanka. The former group has been able to develop a relatively independent industry, both with regard to ‘mature’ consumer goods industries and in relation to components. The new entrants, by contrast, remain heavily dependent upon MNC investment and technology. Three factors affect the future of the industry—domestic markets, protectionism and technical change. After assessing each of these factors, the article concludes on a rather pessimistic note, but points to the potential for greater intra‐Third World trade.