Deployment of Taiwan IPC industry in Southeast Asia

Zouhao Shen, DIGITIMES Research, Taipei 0


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As geopolitical tensions have been spreading, IPC makers' customers are demanding to have more production capacity outside of China and Taiwan to lower the risks of being affected.

Geopolitical risks have become a key concern among customers of Taiwan's industrial PC (IPC) makers when placing orders. Taiwanese IPC companies used to keep most of their manufacturing capacity in Taiwan and China, but in recent years, more and more customers have grown worried about having their products made in China or even in Taiwan and are requesting their IPC partners to establish manufacturing bases outside the greater China region to diversify risks.

As a result, DIGITIMES Research has seen Taiwanese IPC companies begin to increase investment in Southeast Asia and India. Since 2022, more than six companies have disclosed that they have finalized or are considering plans for setting up factories in these regions.

Taiwanese IPC companies generally saw sales decline slightly in 2023. According to DIGITIMES Research's analysis of Taiwanese IPC firms' overall sales performance in terms of regional markets, combined revenues from Europe had the best annual growth of 8.7%, while the growth of those from the Asia Pacific region (including Taiwan) was the weakest at -12.8%.

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