Hong Kong

In the 1950s, Hong Kong began assembling mechanical watches from components imported from the U.S.S.R., but had little impact on the mechanical watch market. In 1974 Hong Kong factories began assembling LED and then LCD watches for export. Concentrating on low-end modules that cost pennies to make, Hong Kong by 1978 exported the largest number of electronic watches worldwide. Both traditional watchmaking firms and the U.S. semiconductor companies competing in the consumer electronics market were irreparably damaged.