Taiwan ODMs keep diversifying production to Southeast Asia, says DigiTimes

Though US-China trade tensions seem to be easing, Taiwan ODMs are still moving ahead with their production deployments in Southeast Asia as they are requested by brand vendors to diversify manufacturing risks that may arise from persistent competition in tech domains, according to industry sources.

The sources said that Taiwan EMSs and ODMs including Foxconn, Compal Electronics, Wistron, Inventec and Pegatron are all busy relocating part of their production to Southeast Asia or South Asia from China, although they share the view that China remains their major manufacturing base given the availability of high-tech talent and complex electronics ecosystems.

Over the past six months, their brand vendors of diverse product lines including Bluetooth headphones, smart speakers, smartphones, notebooks, desktops and servers have asked them to move production to Southeast Asia to counter uncertainties associated with trade rows between the two leading economies, thanks to the region’s sufficient supply of young populations, geographic proximity to both Taiwan and China, and easier access to local markets there….