Huaxin Technology Business Group’s new printed circuit board (PCB) factory in Malaysia will start shipping from the middle of this year to meet and supply server needs.the supply chainUrgent need for decentralization.
Yang Qianning, president of Huaxin Technology subsidiary Elna Co., said in an interview with Nikkei that the new PCB factory will start shipping in June or July and will first supply to Vietnam. This factory will become a complete PCB factory in the future.Southeast AsiaSupply Centre.
Huaxinke is Taiwan’s second largest supplier of passive components. In early 2018, it announced that its subsidiary Jingcheng Technology would spend 3.5 billion yen (US$23.7 million) for acquisitions.JapanElna. Elna’s main business is the production of PCBs for Japanese car manufacturers. However, this acquisition comes in handy as the U.S.-China trade war intensifies. Due to increasing demand for production capacity outside the mainland, Huaxinke was able to access production facilities in Malaysia and Japan through Elna. In the past, Huaxinke’s PCB production capacity was concentrated in mainland China and Taiwan.
In 2022, Jingcheng Technology announced a multi-year investment plan at a cost of MYR 1 billion (USD 211 million) to build a five-story manufacturing plant next to Elna’s existing facilities. The new factory was completed last month and installation of equipment has started.
Yang Qiling pointed out that the increasing demand for decentralization of the server supply chain has given Huaxinke, which has deployed overseas in time, an opportunity to further strengthen its position in the server supply chain.
Server assembly companies including Hon Hai, Quanta, Inventec and Pegatron have established production facilities in Vietnam or Thailand. Vivin and Supermicro are also building server production lines in Johor, Malaysia.
Yang Qianning said that since he took over at Elna in 2018, he has seen a new server supply chain ecosystem gradually taking shape in Southeast Asia.
Yang Qianning said that in terms of supply chain ecosystem, mainland China is still the most efficient manufacturing center. “It is easy to build new factories overseas, but it is very difficult to build a new supply chain ecosystem.” For example, he said that the PCB manufacturing process must work 24 hours a day, so once the equipment fails, it needs to be solved as soon as possible, otherwise batches of products will be scrapped. “In China or Taiwan, this can be done very quickly, but outside the region, it can take a week for (engineers) to arrive and assist. So we need a service center from the equipment manufacturers, at least in Malaysia or somewhere else.” need to be established in Southeast Asia.”
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