Source: Thailand Business News

Thailand is set to become Southeast Asia’s leading electric vehicle (EV) manufacturing hub by 2030, with an anticipated US$6.5 billion commercial real estate market according to JLL. This growth is driven by ambitious government policies like the 30@30 initiative, aiming for 30% of vehicle production to be electric, alongside significant foreign investments, expected to reshape the real estate landscape.

To meet its targets under the 30@30 policy, the country will require substantial new manufacturing infrastructure, particularly for battery production, which will demand over 34 GWh capacity. As of late 2023, Thailand had approximately 167,000 EVs, nearing its 2030 goal of 440,000.

Investment in research and development is crucial for maintaining a competitive edge in the EV sector. With government-backed subsidies enticing automakers and specialised real estate needed for high-tech manufacturing, Thailand is building a robust infrastructure to support not only EV production but also connected industries, ensuring long-term sustainability in its industrial economy.

As Thailand moves towards becoming Southeast Asia’s leading electric vehicle (EV) manufacturing hub by 2030, several metalworking machine tools will experience increased demand due to the specific needs of EV production.

CNC machining centers, laser cutting machines, die casting machines, robotic welding systems, and stamping machines will likely surge, alongside specialized battery manufacturing tools and advanced inspection systems, as Thailand scales up its EV manufacturing capacity.

What You Missed:

NYT Sends AI Startup Perplexity ‘Cease And Desist’ Notice Over Content Use
BYD Owners In Thailand Slam ‘Unfair’ Practice
We Are At Metalex Vietnam 2024!
Toyota Vehicles Zooms Ahead In Thailand’s Automobile Market
VinFast Slows Down Thailand’s Market Expansion
VS Industry’s Orders From The Philippines Expected To Reap RM1.5 Billion From Consumer Electronics Products
Unveiling The Effect Of Industry 5.0 On The Semiconductor Ecosystem In Indonesia
From Vision To Reality: How India Can Emerge As An Electronics Manufacturing Leader
wire & Tube China 2024 Visitor Pre-registration Opens!
Industrial Automation Redefined: Insights From ARC Industry Leadership Forum

WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!

CONNECT WITH US:  LinkedIn, Facebook, Twitter

Letter to the Editor
Do you have an opinion about this story? Do you have some thoughts you’d like to share with our readers? APMEN News would love to hear from you!

Email your letter to the Editorial Team at Christellee@epl.com.sg

The post Thailand Electric Vehicle Industry Fuels Boom In Commercial Real Estate appeared first on Asia Pacific Metalworking Equipment News | Manufacturing | Automation | Quality Control.

Recently, Apple decided to manufacture the iPhone 16 series in India, marking a significant shift in its supply chain strategy. This move comes amid escalating tech tensions between the U.S. and China. Earlier this year, Microsoft Corp. urged its China-based AI team to relocate, highlighting the increasing strain on tech companies operating in China.

However, Apple is not looking at just India, it was toying with the idea of Indonesia in April this year. Last December, Apple is working with China’s BYD, a key iPad assembler, to move new product introduction (NPI) resources to Vietnam. In other words, Apple is spreading its presence across Asia as some form of safety net if China’s relations gets more intense.

For Apple suppliers in Vietnam, the end of summer is recruitment season. In the months ahead of the busy holiday shopping rush, companies like Luxshare and Foxconn try to fill thousands of permanent and temporary assembly jobs, building products like AirPods and iPads, Rest of World reported. Competition for these jobs was once fierce. In the past couple of years, as more manufacturers relocate from China to Vietnam, the benefit of choice has shifted to the workers.

“There are more factories competing for the same pool of workers, and so many have had to increase perks and find ways to attract workers,” Tong Diep Anh, marketing director at Viec 3 Mien, a recruitment company for Apple manufacturers, told Rest of World. “In the past, when demand for work was high, workers had to pay money to get a job. Now that the job market is saturated, workers have a choice.”

 

Putting Into Context

Trade tensions have spooked several businesses including HP, leading to relocating production facilities out of China. This time, Southeast Asia is the manufacturing hub of choice, according to the Nation, Thailand.

Corporations such as Samsung, Nike, and Adidas have reportedly moved substantial portions of their production to countries like Vietnam and Indonesia. Samsung relocated its smartphone manufacturing to Vietnam, where it now contributes significantly to the country’s GDP.

Nike has shifted a considerable part of its footwear production to Vietnam as well, where over half of its shoes are now made. Meanwhile, Adidas has reduced its reliance on Chinese manufacturers, turning to alternatives in Southeast Asia. Even Apple is looking to Indonesia for its manufacturing facility.

Vietnam, Indonesia, and Thailand are among the key destinations attracting these relocations, offering lower labour costs, expanding manufacturing capabilities, and favourable trade agreements. Hyundai Motor Company will invest THB1 billion (US$28 million) to set up a facility to assemble electric vehicles (EVs) and batteries in Thailand, the country’s Board of Investment (BOI) said on 7 August 2024, according to Bangkok Post.

These moves are part of a broader shift as companies seek to mitigate risks associated with over-reliance on China and leverage the growing economic potential of Southeast Asia. Tensions over Taiwan pushing Hewlett-Packard to move a significant proportion of PC production from China, Nation Thailand quoted Nikkei Asia.

The mass exodus extends beyond Apple. US-based IT giant Hewlett-Packard (HP) is looking to shift more than half of its PC (personal computer) production away from China to reduce potential geopolitical risks. HP also plans to set up a backup design hub in Singapore, the report said. 

Vietnam’s Manpower Dilemma

Vietnam is the most popular location for tech manufacturers wishing to diversify away from China to avoid U.S. tariffs. The country registered large foreign direct investment in new projects and expansion in the fields of semiconductors, energy, component manufacturing, and electronics in the first eight months of this year, according to the Ministry of Planning and Investment. 

Apple suppliers and their vendors have notably increased their presence in Vietnam, with Luxshare, Foxconn, and Goertek all opening up new factories. In 2015, Vietnam hosted just eight Apple suppliers; by 2023, the country had 35 suppliers assembling AirPods, iPads, and MacBooks. Yet, Vietnam appears to be the country starved for skilled labour.

One of Vietnam’s primary selling points for tech manufacturers is its relatively cheap and plentiful labour force. Manufacturing wages in Vietnam are less than half those in China, even as real minimum wages grew by 11.3% per year in the decade from 2010 to 2019, among the fastest in Asia. In July, Vietnam raised the monthly minimum wage by 6% to 4.96 million dong ($200). However, these wages are often insufficient, and workers rely on overtime to make ends meet. 

What You Missed:

HP Eyes Thailand In Plans To Shift Production From China
Samsung Plans To Invest US$1.8 Billion More In Vietnam For OLED Manufacturing
ViMUT Hospital Opens Facial Contouring Centre To Meet Thailand Cosmetic Surgery Demand
OpenAI Says New ChatGPT Model Can Reason And Think ‘Much Like a Person’
Can Laos Become Southeast Asia’s Next Manufacturing Hub?
Research Reveals Almost Half Of FDA-Approved AI Medical Devices Lacked Clinical Validation
AI Software Tool Aims To Spot Early Signs Of Dementia From Brain Scans
Malaysia Bigfoots Thailand As Foreign Investors Return
New Growth Drivers In Manufacturing Boost China’s Industrial Output In July
Vietnam Manufacturing Output Surges to a 13-Year High

WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!

CONNECT WITH US:  LinkedIn, Facebook, Twitter

Letter to the Editor
Do you have an opinion about this story? Do you have some thoughts you’d like to share with our readers? APMEN News would love to hear from you!

Email your letter to the Editorial Team at Christellee@epl.com.sg

The post Apple Manufacturers’ Exodus From China Sparks Manpower Shortage appeared first on Asia Pacific Metalworking Equipment News | Manufacturing | Automation | Quality Control.

Source: The Straits Times

A total of 80% of all passenger vehicles here are expected to be electric by 2040, compared with a regional average of 24%, the report said. Thailand, in second place, is forecast to have a 41% share, followed by Vietnam (31%), Indonesia (25%), Malaysia (15%) and the Philippines (10%).

Singapore had the highest EV adoption rate among the six Southeast Asian countries in 2023, according to BloombergNEF, with EVs accounting for about 19% of all vehicles sold here. In the first seven months of 2024 alone, EVs formed 32.1% of new car registrations, based on data from the Land Transport Authority.

According to the BloombergNEF report released on 26 August 2024, the Republic also had the highest density of public EV charging stations in Southeast Asia in 2023, with one charging station for every three EVs. In Thailand, there was one public charger for every 16 EVs. Malaysia had one for every 38 EVs, and Indonesia had one for every 42.

In its 2024 report on the outlook for EVs in the region, BloombergNEF said falling battery prices are “key to EV adoption”. The cost of manufacturing batteries can fluctuate depending on the availability and cost of raw materials and other components, as well as supply-and-demand factors. 

This is because batteries are the most expensive component of EVs, said Ms Komal Kareer, the report’s author.

“Falling battery prices will reduce the upfront cost of the vehicle… and make EVs competitive with gasoline(-fuelled) vehicles,” said Ms Kareer, who researches clean transport in South and Southeast Asia.

She noted that a key roadblock to EV adoption is “a dearth of electric models that can compete with these prices (of fossil fuel-powered cars) as well as deliver the desired performance”.

In its report, BloombergNEF predicted that battery prices would fall by 17% every time the total number of batteries on the market doubles. Between 2010 and 2023, battery pack prices fell 90%. 

In 2023, annual passenger EV sales in Southeast Asia tripled for a second straight year, driven by supportive policies and the growing presence of Chinese carmakers in the region, which have been bolstered by subsidies and tax breaks.

For example, major Chinese automakers such as BYD, Great Wall Motor and GAC Aion have manufacturing facilities in Thailand – by far the biggest market for EVs in the region, with sales rising more than four times to 86,383 units in 2023. More than 153,500 passenger EVs were sold in Southeast Asia in 2023, including 5,734 in Singapore. This figure includes plug-in hybrids.

Associate Professor Walter Theseira, a transport economist from the Singapore University of Social Sciences, told The Straits Times that the projection that Singapore will have by far the largest share of passenger EVs in Southeast Asia by 2040 is “not extraordinary”. 

“The Singapore vehicle market is quite different from that of regional countries, and there are factors here that make EV adoption much more extensive,” Prof Theseira said. 

The chief reason for Singapore’s increasing EV adoption rate is the certificate of entitlement (COE) system, which encourages car owners to turn in their vehicles every 10 years. By contrast, in most other countries in the region, owners keep their cars for more than 10 years or sell them on the second-hand market until the vehicle is no longer economically viable to use, Prof Theseira said.

Coupled with policies that encourage EV adoption – for example, no new diesel-powered cars or taxis will be registered in Singapore from 2025 – it is not surprising that Singapore’s EV adoption rate is much higher than the regional average, he added. The availability of charging infrastructure is also another factor, Prof Theseira said, though this comes with “pluses and minuses”.

“Singapore is very compact; no one would seriously have ‘range anxiety’ in Singapore,” he said, referring to the fear that an EV would run out of power.

On the other hand, most people “must rely on chargers that are controlled and installed by someone else. It depends on where you live and the surrounding infrastructure”, Prof Theseira said, as “only a very small percentage of people will have the ability to install chargers in their homes”.

As for the electrification of public buses, the governments of all six countries covered in BloombergNEF’s report have set electric bus adoption targets, with Thailand leading the region’s electric bus deployments in 2023. The Bangkok Mass Transit Authority, a government-owned public bus company, plans to deploy 3,390 electric buses over an unspecified period, and private bus operator Thai Smile Bus holds the right to operate its electric buses on 123 routes in Bangkok, including round-the-clock services.

In 2023, Thai Smile Bus had 2,100 electric buses in Bangkok and its surrounding provinces, with plans to add another 1,000 such buses in 2024. In Jakarta, the Indonesian government plans to electrify half of its public bus fleet by 2027.

Singapore has a similar goal, with plans to have half of its 6,000 public buses running on electricity by 2030, as well as all public buses running on cleaner energy by 2040.

Malaysia’s largest bus operator Rapid Bus intends to electrify 30% of its fleet by 2030. Singapore’s target is for all vehicles to run on cleaner energy by 2040. From 2030, all new car and taxi registrations must be of cleaner-energy models. Under Singapore’s Green Plan, 60,000 EV charging points will be available by 2030.

What You Missed:

AI Software Tool Aims To Spot Early Signs Of Dementia From Brain Scans
Bacteria Helping To Extract Rare Metals From Old Batteries In Boost For Green Tech
Malaysia Bigfoots Thailand As Foreign Investors Return
New Growth Drivers In Manufacturing Boost China’s Industrial Output In July
Vietnam Manufacturing Output Surges to a 13-Year High
Mercedes-Benz Korea Makes Batteries Information Public In Its EVs
Malaysia Launches First Chip Design Park In Puchong
HP Eyes Thailand In Plans To Shift Production From China
Hyundai To Invest US$28 million In Thailand For EV Assembly And Batteries
Industrial Automation Redefined: Insights From ARC Industry Leadership Forum

WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!

CONNECT WITH US:  LinkedIn, Facebook, Twitter

Letter to the Editor
Do you have an opinion about this story? Do you have some thoughts you’d like to share with our readers? APMEN News would love to hear from you!

Email your letter to the Editorial Team at Christellee@epl.com.sg

The post Singapore Will Have Largest Share Of Passenger EVs In Southeast Asia By 2040 appeared first on Asia Pacific Metalworking Equipment News | Manufacturing | Automation | Quality Control.

Corporations such as Samsung, Nike, and Adidas have reportedly moved substantial portions of their production to countries like Vietnam and Indonesia. Samsung relocated its smartphone manufacturing to Vietnam, where it now contributes significantly to the country’s GDP.

Nike has shifted a considerable part of its footwear production to Vietnam as well, where over half of its shoes are now made. Meanwhile, Adidas has reduced its reliance on Chinese manufacturers, turning to alternatives in Southeast Asia. Even Apple is looking to Indonesia for its manufacturing facility.

Vietnam, Indonesia, and Thailand are among the key destinations attracting these relocations, offering lower labour costs, expanding manufacturing capabilities, and favourable trade agreements. Hyundai Motor Company will invest THB1 billion (US$28 million) to set up a facility to assemble electric vehicles (EVs) and batteries in Thailand, the country’s Board of Investment (BOI) said on 7 August 2024, according to Bangkok Post.

These moves are part of a broader shift as companies seek to mitigate risks associated with over-reliance on China and leverage the growing economic potential of Southeast Asia. Tensions over Taiwan pushing Hewlett-Packard to move a significant proportion of PC production from China, Nation Thailand quoted Nikkei Asia.

US-based IT giant Hewlett-Packard (HP) is looking to shift more than half of its PC (personal computer) production away from China to reduce potential geopolitical risks. HP also plans to set up a backup design hub in Singapore, the report said. 

Nikkei Asia cited multiple sources as saying that HP is in talks with suppliers about the move and aims to achieve its target in two to three years. The company has set an internal goal of eventually making up to 70% of its notebooks outside of China.

A major destination for the move is Thailand, said the report, adding that at least five HP suppliers are building new manufacturing facilities or warehouse hubs in the kingdom, and two have been increasing capacity there since the beginning of the year at HP’s request.

Nikkei Asia quoted an executive-level source as saying:

“It is certain that HP is betting big on building a production hub in Thailand. We have other Southeast Asian facilities to support the client, but they said it is not efficient enough, so we are building a new factory in Thailand now, as requested.”

Other sources said that in internal talks, several HP executives have been emphasising the emerging business opportunities in Southeast Asia and the Middle East while flagging the geopolitical risks of keeping production centered in China, due to years of US-China tensions as well as disruptions from Covid.

What You Missed:

Hyundai To Invest US$28 million In Thailand For EV Assembly And Batteries
Industrial Automation Redefined: Insights From ARC Industry Leadership Forum
Malaysia Sets Its Eyes On Medical Devices Manufacturing Market
Singapore Prepares More Land To Woo Semiconductor Giants Looking To Ride AI Wave
Chinese Enterprises Also Eye Manufacturing Opportunities In The Philippines
More Factories Relocate From China To Malaysia Over Restrictions
LG-Hyundai Electric Car Battery Factory To Open On 3 July 2024
Chinese Automakers Double Down On Presence In Thailand
Hitachi Industrial Equipment Systems’ ML Predictive Diagnosis Service For Air Compressors
TSMC Sees Annual Sales Growth To Reach 10% In Semiconductor Industry

WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!

CONNECT WITH US:  LinkedIn, Facebook, Twitter

Letter to the Editor
Do you have an opinion about this story? Do you have some thoughts you’d like to share with our readers? APMEN News would love to hear from you!

Email your letter to the Editorial Team at Christellee@epl.com.sg

The post HP Eyes Thailand In Plans To Shift Production From China appeared first on Asia Pacific Metalworking Equipment News | Manufacturing | Automation | Quality Control.

This came shortly after the Thailand developed a new public-private network to create swappable batteries for small EVs in line with the government’s goal to make the country into an EV hub. A public-private network was recently launched to promote cooperation to develop technology for the making of standardised swappable batteries for small electric vehicles (EVs).

This development matches the government’s policy of making Thailand an EV hub in the Asia-Pacific region. Thailand Science Research and Innovation (TSRI), an agency under the Ministry of Higher Education, Science, Research and Innovation (MHESI), unveiled its tie-up with the Thailand Energy Storage Technology Association (TESTA) at the International Energy Storage Forum 2024 in Bangkok on 5 July 2024.

Thailand’s booming EV sector is currently dominated by Chinese carmakers, including BYD (Build Your Dreams) and Great Wall Motors, which are using the country as a manufacturing base for exporting vehicles across Southeast Asia. The Hyundai factory, to be located just southeast of the capital city of Bangkok, will start production in 2026, according to a BOI statement.

“Thailand’s strong existing supply chain will allow Hyundai to source not less than a third of the raw materials and parts it needs from within Thailand, thus supporting the local industry,” BOI Secretary General Narit Therdsteerasukdi said.

EV sales are surging across Southeast Asia, led by BYD, eating into the internal combustion engine car market dominated by Japanese and Korean firms. Thailand, the region’s biggest auto manufacturing hub, accounted for 55% of all Southeast Asia’s EV sales in the first quarter, according to Counterpoint Research.

However, with the pulling out of two Japanese auto titans, Thailand may just be the fertile ground for Korean players.

What You Missed:

Industrial Automation Redefined: Insights From ARC Industry Leadership Forum
Malaysia Sets Its Eyes On Medical Devices Manufacturing Market
Singapore Prepares More Land To Woo Semiconductor Giants Looking To Ride AI Wave
Chinese Enterprises Also Eye Manufacturing Opportunities In The Philippines
More Factories Relocate From China To Malaysia Over Restrictions
LG-Hyundai Electric Car Battery Factory To Open On 3 July 2024
Chinese Automakers Double Down On Presence In Thailand
Hitachi Industrial Equipment Systems’ ML Predictive Diagnosis Service For Air Compressors
TSMC Sees Annual Sales Growth To Reach 10% In Semiconductor Industry
Vietnam Versus Malaysia For Semiconductor Design Hub Crown

WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!

CONNECT WITH US:  LinkedIn, Facebook, Twitter

Letter to the Editor
Do you have an opinion about this story? Do you have some thoughts you’d like to share with our readers? APMEN News would love to hear from you!

Email your letter to the Editorial Team at Christellee@epl.com.sg

The post Hyundai To Invest US$28 million In Thailand For EV Assembly And Batteries appeared first on Asia Pacific Metalworking Equipment News | Manufacturing | Automation | Quality Control.

Source: The Nation Thailand

Top six economies in Southeast Asia – Vietnam, the Philippines, Indonesia, Malaysia, Thailand, and Singapore (SEA-6) – are projected to grow at an average annual rate of 5.1%, outperforming China.Released on 1 August 2024 by the Angsana Council, Bain & Company, and DBS Bank.

A key factor driving this surge is a significant increase in FDI. For the first time in a decade, Southeast Asia attracted more FDI than China in 2023. Southeast Asia’s FDI amounted to US$206 billion while China received $43 billion. This represents a 37% growth in FDI for Southeast Asia between 2018 and 2022, compared to China’s 10%.

“Southeast Asia is experiencing a transformative shift,” said Charles Ormiston, Advisory Partner at Bain & Company and Chair of the Angsana Council. “Strong domestic growth coupled with the region’s strategic location has made it an increasingly attractive destination for global investors.”

While Southeast Asia has historically lagged behind economic powerhouses like China and India, it is now positioned for a period of rapid growth. The report highlights several factors contributing to this transformation:

• Strong domestic investment: Businesses are increasingly investing in Southeast Asia, fuelling economic expansion.
• Diversified economy: The region is expanding beyond traditional industries, with growth in sectors like technology, manufacturing, and services.
• Favourable demographics: Countries like the Philippines are benefiting from a young and growing population.

Vietnam is leading the region’s growth, followed closely by the Philippines and Indonesia. Vietnam and the Philippines are expected to exceed 6% growth, with Indonesia close behind at 5.7%. Malaysia follows at 4.5%, while Thailand and Singapore are projected to grow at 2.8% and 2.5%, respectively.

Taimur Baig, DBS Bank Managing Director and chief economist, expressed optimism about the region’s prospects. 

“The world is changing, and Southeast Asia is well-positioned to capitalise on these shifts. With the right policies and investments, the region can achieve even greater heights,” he said.

Southeast Asia — Transition From Resurgence To Growth 

The Philippines is set for robust growth at 6.1%, driven by a government committed to development, especially in infrastructure and renewable energy projects. Unlike Singapore and Thailand, the Philippines stands to gain from its favourable demographics. Indonesia’s economy is predicted to expand by 5.7%, with room for even higher growth. This potential stems from its rich natural resources, growing population, and vibrant startup scene.

To fully capitalise on these advantages, Indonesia needs to broaden its economic base beyond raw materials and foster a more open, competitive business environment. Malaysia’s projected 4.5% growth rate is underpinned by its renewed focus on attracting foreign investment, particularly in established sectors like semiconductors. The country is also well-positioned to benefit from spillover effects from Singapore, notably in the expanding data centre industry. 

In fact, Malaysia could potentially more than double Singapore’s current data centre capacity, challenging the city-state’s regional dominance in this sector. While Thailand’s growth forecast is more modest compared to its regional counterparts, the country still holds considerable promise.

Its economic strengths include a recovering tourism industry, a well-established position as a regional automotive manufacturing hub with solid infrastructure, and the presence of conglomerates with a strong regional focus, the report said.

Looking ahead, to accelerate growth, the experts pointed out that SEA-6 needed to adopt strategies to redirect resources, make bold policy changes and take risks in some issues such as infrastructure development, education, and environmental sustainability to fully realise its potential.

The report also identifies five key opportunities to accelerate growth in Southeast Asia. These include investing in emerging growth sectors, encouraging technology-enabled disruptors, strengthening capital markets and increasing investment, accelerating the green transition, and supporting multilateral initiatives.

What You Missed:

Airbus Boss Admits Long Delays In Aircraft Manufacturing
Singapore Prepares More Land To Woo Semiconductor Giants Looking To Ride AI Wave
Chinese Enterprises Also Eye Manufacturing Opportunities In The Philippines
More Factories Relocate From China To Malaysia Over Restrictions
LG-Hyundai Electric Car Battery Factory To Open On 3 July 2024
Chinese Automakers Double Down On Presence In Thailand
Hitachi Industrial Equipment Systems’ ML Predictive Diagnosis Service For Air Compressors
TSMC Sees Annual Sales Growth To Reach 10% In Semiconductor Industry
Vietnam Versus Malaysia For Semiconductor Design Hub Crown
Vietnam Sluggish Auto Sales Hit Major Motorshow

WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!

CONNECT WITH US:  LinkedIn, Facebook, Twitter

Letter to the Editor
Do you have an opinion about this story? Do you have some thoughts you’d like to share with our readers? APMEN News would love to hear from you!

Email your letter to the Editorial Team at Christellee@epl.com.sg

The post Southeast Asia Set To Overtake China In Growth And FDI appeared first on Asia Pacific Metalworking Equipment News | Manufacturing | Automation | Quality Control.

Foreign companies are moving their manufacturing facilities out of China to establish production hubs in other countries as trade tensions continue to brew between China and the US. Malaysia, the world’s sixth largest exporter of semiconductors in the world, has greatly benefited from this strategy known as China Plus One, where companies diversify their business outside of China.

Malaysia has a 50-year edge in the sector given that Intel established its first international manufacturing plant in the northern state of Penang. Intel is also building another factory in Penang that will be the US States chip giant firm’s overseas facility for advanced 3D chip packaging. Malaysia is on a particularly attractive spot given that many semiconductor and electric vehicle companies relocating to Southeast Asia to bypass trade restrictions and strengthen their supply chains.

The country has an existing ecosystem in Penang and the neighbouring Kulim in Kedah. This provides an option for technology companies seeking to date-risk amidst intense rivalries between the US and China over cutting-edge technologies.

Philippines — The Alternative Location

It seems Philippines is also attracting attention from Chinese enterprises, Manufacturing Asia noted. JLL, a global real estate company, states that companies are diversifying their manufacturing locations across India and Southeast Asia, including the Philippines, to offset supply chain disruptions in China.

China has dominated global manufacturing for decades. However, JLL noted that companies are “increasingly diversifying their operations elsewhere, adding manufacturing bases outside of China to hedge against supply chain disruptions.” Rising costs in China, the firm said, have pushed manufacturers to expand to other countries, with land prices in China being up to twice higher than in Southeast Asian countries and India.

Michael Ignatiadis, JLL Asia Pacific Head of Manufacturing Strategy stated that diversification within supply chains is a natural step for companies involved in manufacturing within the wider economic lifecycle of Southeast Asia and India. The Philippines, in particular, has caught the attention of the US with its inclusion in the CHIPS Act, which aims to expand and diversify the semiconductor supply chain such as integrated circuits, RF/microwave, and assembly and testing services.

JLL also noted the record-high of US$49.1 billion in electronics exports in 2022, including consumer and industrial electronics, as well as telecommunication equipment. The firm, added the manufacturing sector should make a careful evaluation of non-cost or qualitative factors when deciding to diversify.

Skilled labour, infrastructure, environmental regulations, proximity to suppliers and political stability are all crucial for long-term success and sustainability in manufacturing operations. Peter Guevarra JLL Asia Pacific Director and research consultancy said that each economy in Southeast Asia is at a different level of its manufacturing storey.

“But we can confidently say that policymakers are extremely keen to take advantage of diversification initiatives of supply chains,” he stressed.

Companies must also carefully evaluate various factors such as costs, market access, infrastructure, labour and governmental support before making investment decisions. 

What You Missed:

More Factories Relocate From China To Malaysia Over Restrictions
LG-Hyundai Electric Car Battery Factory To Open On 3 July 2024
Chinese Automakers Double Down On Presence In Thailand
Hitachi Industrial Equipment Systems’ ML Predictive Diagnosis Service For Air Compressors
TSMC Sees Annual Sales Growth To Reach 10% In Semiconductor Industry
Vietnam Versus Malaysia For Semiconductor Design Hub Crown
Vietnam Sluggish Auto Sales Hit Major Motorshow
Motional Flies Solo After Aptiv’s Curtain Call
Tesla Fired Its Supercharger Division – A Shocking Yet Brilliant Move
Tesla Profits Decline By More Than 50% In Q1 2024

WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!

CONNECT WITH US:  LinkedIn, Facebook, Twitter

Letter to the Editor
Do you have an opinion about this story? Do you have some thoughts you’d like to share with our readers? APMEN News would love to hear from you!

Email your letter to the Editorial Team at Christellee@epl.com.sg

The post Chinese Enterprises Eye Manufacturing Opportunities In The Philippines appeared first on Asia Pacific Metalworking Equipment News | Manufacturing | Automation | Quality Control.

Source: Manufacturing Asia

Emerging manufacturing hubs in Southeast Asia are poised to significantly increase their semiconductor assembly, testing, and packaging (ATP) capacity over the long term, according to the Semiconductor Industry Association (SIA) and Boston Consulting Group (BCG).

In a joint report titled “Emerging Resilience in the Semiconductor Supply Chain,” SIA and BCG said the region already accounted for nearly 20% of the world’s ATP capacity in 2022 with a large concentration in Malaysia (7%) and the Philippines (6%). 

The region’s market share is forecasted to grow to nearly 27% of the global ATP capacity by 2032 with emerging hubs like Vietnam playing catch up. Malaysia will likely retain its lead with a 9% market share while Vietnam is estimated to grow its ATP capacity to 8% of the global capacity by 2032, from less than a 1% market share in 2022. The Philippines’ market share, meanwhile, is expected to dip to 5%.

Despite the catch-up, SIA and BCG said the global ATP market will continue to be dominated by the big players in East and Northeast Asia considering they already host the majority of world’s existing back-end capacity to date. Mainland China, dubbed as the world’s factory, currently makes up for 30% of the global ATP capacity and is expected to increase its share to 32% by 2032. This is followed by Taiwan whose share of the market is estimated to dip from 27% currently to 23% in the next 10 years.

Korea’s existing share of 9% in the ATP market is also seen dipping to 5% during the forecast period.

“Whether new markets will realize their full potential (in ATP) to attract investment will depend on numerous factors, such as access to a skilled, cost-competitive workforce; availability of reliable power and water utilities; an enabling regulatory environment with limited market barriers; security and rule of law; and competitive incentives schemes,” SIA and BCG stated in the report.

What You Missed:

Toyota Raided For Fraudulent Safety Tests Data, Chairman Apologises
Daihatsu Executives To Step Down After Embarrassing Safety Saga
Thailand Car Production To Enjoy 3.17% Increase
1,300 Real Estate Companies In Vietnam Closed In 2023
Boeing 737’s Harrowing Midair Incident Underscores MRO Importance
Tesla Recalls 2 Million Cars Over Brake System Warning Light
Robotaxi Firm Motional Loses Funding From Aptiv
DJI’s Releases First Delivery Drone, DJI FlyCart 30 (FC30)
Tesla Dethroned By BYD As World’s Best Selling EV Maker
Quang Ninh Industrial Zones Face Electricity Shortage

WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!

CONNECT WITH US:  LinkedIn, Facebook, Twitter

Letter to the Editor
Do you have an opinion about this story? Do you have some thoughts you’d like to share with our readers? APMEN News would love to hear from you!

Email your letter to the Editorial Team at Christellee@epl.com.sg

The post Southeast Asia To Level Up Chip Assembly, Testing And Packaging (ATP) appeared first on Asia Pacific Metalworking Equipment News | Manufacturing | Automation | Quality Control.

According to a report by Allied Market Research, “Southeast Asia Air Transport MRO Market by Aircraft Type, End-Use, Organization Type, and Service Type: Southeast Asia Opportunity Analysis and Industry Forecast, 2021–2032,” the Southeast Asian air transport MRO market was valued at US$5,259.1 million in 2021, and is projected to reach US$13,481.3 million by 2032, registering a CAGR of 7.8% from 2022 to 2032.

The Air Transport MRO (Maintenance, Repair, and Operations) sector plays a vital role in ensuring safe and efficient aircraft operation. It encompasses a range of services and activities necessary to maintain & repair aircraft, systems, and components throughout their operational lifespan.

MRO services cover various aspects, including routine inspections, scheduled maintenance, unscheduled repairs, component replacements, and overall management of aircraft maintenance programs. These services are conducted by specialised MRO companies, both in-house by airlines and outsourced to third-party providers, and adhere to strict regulatory standards and guidelines to ensure compliance with safety regulations.

The return of air travels are jump starting MRO investments. Greater penetration in the commercial sector hike MRO activities in Southeast Asia.

However, the biggest challenge as seen in other industries — shortage of skilled labour and jammed supply chains are thwarting its momentum. Allied Market Research added supportive government policies by the government of the Southeast Asian countries and technological advancement by the market players are expected to provide lucrative opportunities for the expansion of the Southeast Asian air transport MRO market.

Read more here 

What You Missed:

GE Aerospace To Establish ‘Smart Factory’ At Singapore Aircraft Engine Repair Facility
Boeing Review Reveals Appalling Disconnect Between Hierachies
Another Black Mark For Boeing For Damaged Wing Discovered Mid-Air
Solar Energy : When Sunlight Becomes Fuel
Global Semiconductor Revenues Decline 8.8% In 2023; AI Promises Gains In 2024
Vietnam FDI Forecast To Remain Strong Through 2024
Japan Sinks Into Recession, Surprising Many Economists
Changi Airport Tests Aurrigo Autonomous Baggage Handling Vehicle
Spirit To Ramp Up Robotics To Reduce 737 Fuselage Problems
Tesla Recalls 2 Million Cars Over Brake System Warning Light
Robotaxi Firm Motional Loses Funding From Aptiv

WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!

CONNECT WITH US:  LinkedIn, Facebook, Twitter

Letter to the Editor
Do you have an opinion about this story? Do you have some thoughts you’d like to share with our readers? APMEN News would love to hear from you!

Email your letter to the Editorial Team at Christellee@epl.com.sg

The post Charting The Flight Path: MRO Investments To Gravitate Towards Southeast Asia appeared first on Asia Pacific Metalworking Equipment News | Manufacturing | Automation | Quality Control.

Source: Manufacturing Asia

The headline ASEAN manufacturing purchasing managers’ index (PMI) rose to 50 last month from 49.6 in October, indicating steady operating conditions across the region. Last month’s print also ended two straight months of contraction. 

Three of the seven nations surveyed recorded improvements last month, led by the Philippines whose manufacturing sector jumped to a nine-month high of 52.7. The health of the manufacturing sectors in Indonesia and Singapore also expanded last month at the same modest rate of 51.7. Factory activity in Myanmar (48.1), Malaysia (47.9), and Thailand (47.6) all worsened last month while Vietnam was the laggard at 47.3.

For the entire region, factories raised their output to its highest level in three months as companies worked through outstanding orders piled up in the first half of the year, despite muted demand. 

Total factory others continued to dip for the third month running, with new orders from overseas declining once again.

Lower new orders, meanwhile, helped companies to catch up with their backlogs without cutting their staff numbers. Factories continued to grapple with high input prices that rose at its fastest pace since April, resulting in a slight increase in output charges. For the next 12 months, ASEAN manufacturers remained optimistic overall although the sluggish demand has tempered their expectations.

“If customer demand continues to wane, it will be detrimental to ASEAN manufacturing sector performance in the months ahead, said Maryam Baluch, economist at S&P Global Market Intelligence.

What You Missed:

Universal Robots Launches 30 Kg Cobot
Charlie Munger, The Man Who Saw BYD’s Potential Passes At 99
LG Energy Solutions And SK On Lay Off Workers As EV Battery Market Slows
Korea Loses Semiconductor Talent Pool To China
Slaughtering Undone, Sam Altman Resumes Chapter
OpenAI Slaughters Its Golden Goose — Sam Altman
Thailand Shaves Subsidies for EVs As Sales Boom
Embracing Change: Proactive Strategies For Success In The Rapidly Evolving Power Tool Industry
A*Star Launches EV Battery Testing And Disassembly Line
Micron Starts New Assembly And Test Facility In Malaysia

WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!

CONNECT WITH US:  LinkedIn, Facebook, Twitter

Letter to the Editor
Do you have an opinion about this story? Do you have some thoughts you’d like to share with our readers? APMEN News would love to hear from you!

Email your letter to the Editorial Team at Christellee@epl.com.sg

The post Manufacturing Activity In ASEAN Ends Two-Month Contraction In November  appeared first on Asia Pacific Metalworking Equipment News | Manufacturing | Automation | Quality Control.