• Wednesday, July 8, 2020

Pegatron and Qisda to expand production capacity outside China

Discussion in 'China & Far East' started by Viet, Jun 25, 2020.

  1. Viet

    Viet ELITE MEMBER

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    By Mario McKellop
    -
    June 24, 2020


    [​IMG]
    Taiwanese component manufacturing corporations Pegatron and Qisda recently announced plans to expand production capacity outside China. Pegatron plans to move its fabrication capability outside the mainland while Qisda is building a new facility in Vietnam.

    The two organizations decided to diversify their supply chains following an escalation in Sino-American trade friction.

    Pegatron and Qisda’s Manufacturing Changes
    Apple supplier, Pegatron, announced plans to increase its non-China production ratio to 10 to 20 percent by next year. CEO Syh-Jang Liao recently told investors his company is ramping up its global fabrication footprint because of mounting international tension. Presently, the firm maintains most of its factories in China, which leaves it vulnerable to dueling government tariffs and sanctions.

    Liao noted Pegatron is renting a plant in Vietnam that will go online in early 2021. The executive also said his corporation is looking to establish facilities in India, which affirms a March Bloomberg report.

    Similarly, Taipei-based electronics manufacturing service provider Qisda revealed it is building a new factory in Vietnam on Monday. Peter Chen, the company’s chief executive, said his firm is constructing a new factory in Southeast Asia because of worsening relations between the U.S. and China. Chen also stated Qisda is considering shifting more of its production line beyond the Sino nation.

    Vietnam’s Popularity Among Microelectronics Manufacturers
    Pegatron and Qisda are not the only microelectronics companies to relocate part of their operations to Vietnam recently. Printed circuit board maker Wistron earmarked $1 billion to build new factories in several areas, including the Southeast Asian country. Besides, Apple reportedly asked its partners to consider moving 15 to 30 percent of their supply chains to the same region last year.

    In addition, CNBC stated Google and Microsoft intended to move their device assembly operations to Vietnam three months ago.

    While the above-listed brands named the Sino-American trade conflict as motivating their increased fabrication diversity, many regions offer relocation benefits. This month, India and Taiwan launched new incentive programs to attract major foreign component makers. However, Forbes points out affordable labor costs, and a strong national manufacturing tradition makes Vietnam especially appealing.

    Although Chinese-American relations are swiftly normalizing, the expansion plans of firms like Pegatron and Qisda are gradually making Vietnam a player in the international manufacturing landscape.

    https://www.theburnin.com/industry/...ing-production-capacity-outside-china-2020-6/
     
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  2. FairAndUnbiased

    FairAndUnbiased SENIOR MEMBER

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    more low end industry for Vietnam where profits go to international capital. Good job I guess. the materials will still be imported from China as will most of the orders. Vietnam will now be even more dependent on China.
     
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  3. Journeyman

    Journeyman FULL MEMBER

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    China is keep losing jobs while vietnam is keep gaining job. I'll take that on any given day.
     
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  4. 8888888888888

    8888888888888 FULL MEMBER

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    Good, I hope the government decides to ban those companies in China.
     
  5. IN-2030

    IN-2030 FULL MEMBER

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    Many component manufacturer are looking towards India as a base...hope our electronic import will reduce and at the same time export will increase from current approx 4-5$ billion to at least 20$ billion by 2022 and 40-50$ billion by 2025
     
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  6. Viet

    Viet ELITE MEMBER

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    First step: you boycott everything made in China. Buy Vietnam or at least India products. China domestic market is big enough. Chinese don’t need export markets.

    buy Viet phone


    284B8C81-4886-4268-B93F-644326489B04.jpeg
     
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  7. IN-2030

    IN-2030 FULL MEMBER

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    Boycotting everything made in china is not possible in short term but dependency will reduce certainly.Already VIVO OPPO MI has installed assembly pant and increasing local sourcing.Samsung is targeting 100% component to be made in India by next year.Indian market is also huge and it will further increase and it will only be second to China.Also Chinese market is maturing whereas Indian is rapidly increasing.Another factor is fear of US CHINA tariff war.India will be attractive investment destination because not only huge market but also due to low labour cost,lowest corporate tax,new electronic manufacturing policy.
    Haven't heard any Viat mobile brand...can you name some?
     
  8. Viet

    Viet ELITE MEMBER

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    There are many. Two welknown brands are Vsmart (picture with the girl in the previous post) and bphone maker Bkav.

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