Intel has invested a total of US$8 billion in Malaysia, and is committing an additional US$6 billion for the construction of new semiconductor facilities there, including a 3D advanced packaging plant, according to Steve Long, Intel GM of Asia Pacific and Japan (APJ) region.
The US-China trade war triggered the first wave of the electronic industry's moving out from China. The continued tension between Taiwan and China is now driving the second wave of migration. In the first wave of migration, the server supply chain moved the affected product lines to Taiwan and Mexico to accommodate its customers. In the second wave, it will migrate to places like Thailand, Malaysia, and Mexico.
To expand the market for electric two-wheelers abroad, Taiwanese motorcycle brand Kymco and Kymco Capital have partnered with Arun Plus, a wholly-owned subsidiary of Thailand's state-owned petrol company, PTT, to establish a new joint venture. This new entity, with a capital of THB600 million (about US$17.05 million), will be responsible for building the two-wheel EV industry and supply chain in Thailand.
Due to the continued rise of labor costs, establishing a second supply chain for the notebook industry outside of China is a discussion topic that surfaces now and then. However, considering the overall benefits, only a few companies have attempted it. It wasn't until the tension between the US and China in 2018 did this topic receive more attention. Nevertheless, most companies elected to remain cautious and observe how things will develop.
Industry insiders told DIGITIMES that HP would make notebooks in Thailand. Made-in-Thailand HP notebooks are expected to be shipped in the first half of 2024, and the production capacity will gradually increase. HP may also consider making notebooks in Vietnam.
Vietnam-based EV maker VinFast just went public in the US with a special purpose acquisition company (SPAC) merger. The company has been ambitious about expanding overseas. It has shown more than once its intention to partner with Taiwan-based electronic companies to develop its technology platforms.
After trying to attract Tesla's investment for a long time, Indonesia seems to have made some progress. Senior minister Luhut Pandjaitan said the EV giant is considering investing in lithium battery materials in the country and will announce the plan in the following months.
Despite challenges including inflation, inventory destocking, and demand slowdown, many printed-circuit board (PCB)-related manufacturers remain optimistic about the medium- and long-term outlook of the industry. There are three major factors driving their overseas expansion towards Southeast Asia during the business downcycle.
Amid escalating US-China tensions, compaines in both Taiwan and China are eyeing investment opportunities in South and Southeast Asia. Taiwan's AUO is expanding into Vietnam, while Innolux is partnering with Vedanta in India for an LCD factory. China's major panel factories like BOE, TCL China Star Optoelectronics Technology (TCL CSOT), and HSK are investing in the region. These moves reflect a strategic shift in the display industry, positioning the region as an emerging essential production base for electronic products such as smartphones and laptops. Investment in the area is appealing to the suppliers given the population dividends, tariff incentives, subsidies, and lower labor costs.
Industrial PC (IPC) maker Getac said its customers are being cautious about their second-half prospects and that it is seeing poor order visibility in the second half of 2023.
Southeast Asia's largest economy has decided to give itself more time to build a local EV hub. Indonesia announced on August 10 that it will push back the deadline for EV incentives for two years to attract more investment. In addition, the country keeps trying to lure Tesla to produce locally.
PCB maker Zhen Ding Technology has announced plans to set up a new plant in Thailand for the production of primarily automotive and AI server products.
Affected by the off-season and the weak global economic growth, TPK, a prominent Taiwanese touchscreen panel manufacturer, saw a revenue decline in Q2 2023, which resulted in minor losses. However, the company expects a 5–10% growth in revenue for the second half of the year, driven by its major clients halting their inventory adjustments, new product launches, and stabilized notebook shipments. The company expects to break even on its operating revenue.
