Taiwan’s Electronics manufacturers focus on Southeast Asia amid China-US tensions, Covid-19

Headquarters of Taiwan’s electronics manufacturer Delta Electronics in Thailand

A new wave of relocations and regionalisations of production facilities of Taiwanese electronics manufacturers from China to Southeast Asian countries is underway. The moves come as US-China tensions continue to create planning uncertainty and the Covid-19 pandemic is raging across India, Taiwan’s DigiTimes wrote in a May 14 report.

The changes come mostly at the request of clients, the report cited supply chain sources, and the countries benefiting the most were Vietnam, Thailand and the Philippines.

New production lines in Southeast Asia would be mainly used to handle orders from clients for new products, and therefore they are not just moving their existing production facilities from China, the sources said.

Sufficient supply of cheaper labour forces in Southeast Asia would enable manufacturers to save significantly on overall operating costs, although there were still many personnel management issues to be addressed in the region, according to the report.

Expanding capacities at new places

Electronics firms have a different approach to reorganise their supplies and production networks. Taiwanese contract manufacturer Kinpo Electronics, for example, has completed new manufacturing facilities in Thailand and would be able to use part of its available capacity to help its major shareholder Compal Electronics handle some manufacturing orders in the country.

Delta Electronics is also carrying out its production regionalisation efforts through its subsidiary in Thailand, but additionally invests in other Southeast Asian countries.

Keyboard maker Chicony Electronics and power supply vendor Chicony Power have both been strengthening facility set-ups in Thailand, the former having just purchased new land lots in Thailand to support further capacity expansions there, the report said.

Plastics mold and hinge maker Syncmold Enterprise has acquired manufacturing facilities in Thailand from Leohab Enterprise to support its production there. The company has also set up a new plant in Vietnam to serve major clients in China, with the target to start volume production in early 2022, DigiTimes wrote.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

Headquarters of Taiwan's electronics manufacturer Delta Electronics in Thailand A new wave of relocations and regionalisations of production facilities of Taiwanese electronics manufacturers from China to Southeast Asian countries is underway. The moves come as US-China tensions continue to create planning uncertainty and the Covid-19 pandemic is raging across India, Taiwan’s DigiTimes wrote in a May 14 report. The changes come mostly at the request of clients, the report cited supply chain sources, and the countries benefiting the most were Vietnam, Thailand and the Philippines. New production lines in Southeast Asia would be mainly used to handle orders from clients...

Headquarters of Taiwan’s electronics manufacturer Delta Electronics in Thailand

A new wave of relocations and regionalisations of production facilities of Taiwanese electronics manufacturers from China to Southeast Asian countries is underway. The moves come as US-China tensions continue to create planning uncertainty and the Covid-19 pandemic is raging across India, Taiwan’s DigiTimes wrote in a May 14 report.

The changes come mostly at the request of clients, the report cited supply chain sources, and the countries benefiting the most were Vietnam, Thailand and the Philippines.

New production lines in Southeast Asia would be mainly used to handle orders from clients for new products, and therefore they are not just moving their existing production facilities from China, the sources said.

Sufficient supply of cheaper labour forces in Southeast Asia would enable manufacturers to save significantly on overall operating costs, although there were still many personnel management issues to be addressed in the region, according to the report.

Expanding capacities at new places

Electronics firms have a different approach to reorganise their supplies and production networks. Taiwanese contract manufacturer Kinpo Electronics, for example, has completed new manufacturing facilities in Thailand and would be able to use part of its available capacity to help its major shareholder Compal Electronics handle some manufacturing orders in the country.

Delta Electronics is also carrying out its production regionalisation efforts through its subsidiary in Thailand, but additionally invests in other Southeast Asian countries.

Keyboard maker Chicony Electronics and power supply vendor Chicony Power have both been strengthening facility set-ups in Thailand, the former having just purchased new land lots in Thailand to support further capacity expansions there, the report said.

Plastics mold and hinge maker Syncmold Enterprise has acquired manufacturing facilities in Thailand from Leohab Enterprise to support its production there. The company has also set up a new plant in Vietnam to serve major clients in China, with the target to start volume production in early 2022, DigiTimes wrote.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

NO COMMENTS

Leave a Reply