Hyundai Mobis, a Hyundai Motor affiliate, has taken a step forward to diversify its customer base. The automotive parts supplier announced on August 9 that it has secured a large-scale contract for battery system assembly (BSA) with Volkswagen. Hyundai Mobis plans to build a plant in Spain to fulfill the order.
Cooling module maker Asia Vital Components (AVC) plans to expand its production site in Vietnam to meet growing demand from its US customers, according to the Taiwan-based company.
PCB drill manufacturer Topoint held its earnings call on August 4. Looking ahead to 3Q23, it stated that inventory clearance in the supply chain is approaching its end. Most customers anticipate 2Q23 to be rock bottom in terms of operations. Topoint's revenue performance is also showing an upward trend. Despite that, the market outlook remains unclear, which affects the end-user demand situation.
In response to US-China "new Cold War," export-oriented Taiwan and South Korea have been swiftly increasing their investments and establishing manufacturing facilities outside of China. This has given rise to a competitive strategy known as "Taiwan+1" and "South Korea+1." A special report by the Ministry of Economic Affairs(MOEA) reveals that, in 2022, the US ranked as the global leader in foreign direct investment (FDI) with an impressive $1.3 trillion, accounting for 22.0% of the total. ASEAN secured the second position with 17.2%, and China came third with 14.6%. Notably, both Taiwan and South Korea have experienced a decline in their investments in China, while their investments in the U.S. and ASEAN have been steadily increasing. What's interesting is that labor costs are no longer the primary factor influencing the foreign investment decisions of Taiwanese and South Korean companies.
President Joko Widodo's ambition of building out Indonesia's electric-vehicle supply chain is seeing another step forward with plans for a cathode plant.
Doosan Group, a South Korean company, is said to be supplying copper-clad laminates (CCL), the core material for AI accelerator, to Nvidia. Recently, the company has been expanding its investment in the CCL business to cope with the fast-growing AI market.
Solid-state batteries have risen to be the center of R&D efforts for EV batteries. Taiwan-based battery suppliers said they will have to collaborate with partners to gain more resources to realize mass production of the battery technology.
Bosch is expanding its semiconductor business further. The company has now opened a new testing center for chips and sensors in Penang, Malaysia, at a cost of around EUR65 million, and plans to invest an additional EUR285 million at the location by the middle of the next decade.
Primax Electronics, despite enjoying a sequential increase of 9.45%, still saw its second-quarter 2023 consolidated revenues plunge 20.79% on year to NT$16.07 billion (US$507.51 million). However, its gross margin for the second quarter still hit the highest record ever at 15.9%.
Thailand is on track to be the EV hub in Southeast Asia. According to research firm Counterpoint, Thailand accounted for 78.7% of the battery EV sales in the region in the first quarter of 2023. China-based EV makers have risen to be the leaders in the market.
Taiwan-based LED backlight module supplier Radiant Opto-Electronics and light guide plate maker Global Lighting Technologies (GLT) are building new production capacities in Vietnam to meet customers' demands.
Vietnamese electric-vehicle maker VinFast said construction of its North Carolina factory will start July 28 as the company heads toward taking itself public in the US later this year.
Malaysian Prime Minister Anwar Ibrahim said he discussed Telsa Inc.'s investments in the Southeast Asian country during a virtual meeting with Chief Executive Officer Elon Musk.
Despite being one of the primary beneficiaries of global supply chain relocation, Vietnam's electricity shortage has become acute amid the rising demand and supply crunch. DIGITIMES Research analyst Yen Chou said there would be no quick fix for the intense heat waves and imbalance between electricity supply and demand, which may become an issue on Vietnam's way to becoming the rising global production hub.
