Wistron will be aggressively advancing its worldwide manufacturing deployments in response to geopolitical shifts, according to Simon Lin, chairman for the Taiwan-based ODM company.
China remains a key market of Wistron's international customers, said Lin, adding that the company maintains its production operations in China while expanding its manufacturing footprint globally.
Wistron has recently initiated active deployments in Vietnam, Mexico, and India, among others. Currently, facilities in Taizhou and Kunshan, both located in China, are undergoing personnel adjustments. According to Lin, there are no plans to shut down the company's Chinese factories, and all operational shifts are designed to meet consumer needs.
Lin noted that Wistron is relocating production outside of China to accommodate the diverse preferences of its global customers. As a result, the company's output from China will decline. Inevitably, there will be excess manufacturing capacity, which will incur losses. This problem is unavoidable as a consequence of the company's enhanced global manufacturing deployments.
In response to recent rumors that Wistron's India facility would be sold to India's Tata Group, Lin said that unresolved matters are beyond the scope of the discussion.
There are currently four main shocks affecting the high-tech industry: the general economic climate, new artificial intelligence (AI) technologies, ESG socio-environmental regulations, and geopolitical tensions, according to Lin. In this so-called perfect storm, Lin continued, business resiliency is crucial.
Obstacles also present opportunities, which would highlight the value of Taiwan's ICT industry in which Wistron is involved, Lin believes.
The outlook for the global economy in 2023 is undoubtedly not favorable, Lin indicated. Despite the decline in inflation, the economy as a whole has not yet recovered.
Lin stated that the stock market is the only positive aspect of the US economy, but it is still uncertain whether it is a bubble. In Europe, the conflict between Russia and Ukraine persists, and the economy has not improved, according to Lin. Meanwhile, the previous COVID lockdowns in China's main cities have had severe repercussions, so the outlook for China is generally bleak, said Lin.
The geopolitical strife hasn't been lessened, either, Lin indicated. Manufacturers are under a great deal of pressure as they struggle to survive. Regarding global deployment, they can only become more active and demand more international talent.
In response to ESG regulations, Wistron has pledged to achieve carbon neutrality by 2030 and net zero emissions by 2050.
Article translated by Jessie Shen
