Lead times -- or the time it takes between placing an order and it being fulfilled -- for the industry contracted for the ninth month in a row, another indication that we are exiting the pandemic-triggered chip shortage of about two years, reports Susquehanna...
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Global moves for Japanese EMS giants
Mar 17, 2023
Japanese semiconductor distributors and EMS factories such as Sun-Wa Technos, Kaga Electronics, and Ryoyo Electro are accelerating overseas expansion in response to the continued shrinking of the local market according to Nikkei Asia.
“We had been looking for an opportunity to expand into India, which will be home to the largest population in the world,” said Hiroyuki Tanaka, chairman and president of Sun-Wa Technos. According to Nikkei, their overseas sales ratio was 38% in the fiscal year ending March 2022, but it wants to increase that to between 60% and 70%.
The report also pointed out that Kaga Electronics will expand its electronics manufacturing services. The company invested about $7.5 million last year to build a factory in Penang, Malaysia. The company aims to triple its current sales in Malaysia by 2027. It also built a factory in Turkey and plans to start producing semiconductor substrates for air conditioners and power tools from June this year.
In addition, Ryoyo Electro, a distributor of electronic components for home appliances, is also actively expanding overseas. Its overseas sales for the fiscal year ending January 2023 are up 2.7 times from five years ago.
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