Lately we have seen that Chinese manufacturers are expanding outside China. The Covid policy in China for the last couple of years, rising labour cost in China, the tariff imposed by the USA and the recent CHIP Act, are all factors impacting the eco-system of the electronics supply chain. We see some foreign manufacturers moving out of China and Chinese manufacturers expanding their footprint outside China.
We believe there will be a gradual shift of the manufacturing bases. China will no longer be the centre of the world’s supply chain. Predominantly, India, Malaysia, Vietnam and Thailand, are all taking shares of the supply chain from China. Although it is too soon to say which country will be the centre of the world’s supply chain, we can say that the dependence on China alone, will diminish.
As in any industry, the power of a strong supplier base backing you is a matter of success or failure, also in the PCB industry. We have worked in this industry for many companies, for decades, and personally experienced how the industry has changed and continues to change. Understanding the market situation and preparing ahead, are crucial factors to minimize the impact and prepare for the change in the supply chain.
At CONFIDEE, we operate based on transparent communications, clear goals, respect and trust. This benefits the entire supply chain, offering predictability in both ends.
Interested in learning more about us and our manufacturing bases? Reach out here.
