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

A new wave of relocations and regionalisations of production facilities of Taiwanese electronics manufacturers from China to Southeast Parts of asia is underway. The moves come as US-China tensions continue steadily to create organizing uncertainty and the Covid-19 pandemic can be 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 services, and therefore they are not simply going their existing production facilities from China, the sources said.

Sufficient way to obtain cheaper labour forces in Southeast Asia would allow manufacturers to save substantially over overall operating costs, although there were still many personnel management issues to be addressed in your community, in line with the report.

Expanding capacities in new places

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

Delta Electronics is also carrying out its production regionalisation efforts through its subsidiary found in Thailand, and also invests found in other Southeast Parts of asia.

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

Plastics mold and hinge maker Syncmold Enterprise features acquired manufacturing facilities found in Thailand from Leohab Enterprise to aid its production there. The business has also setup a fresh plant in Vietnam to serve major clients in China, with the mark to start volume creation in early 2022, DigiTimes wrote.