Global Production Research

Insights into the New Manufacturing Locations

Selected business news articles on global production

This section provides web links to selected business news articles, focusing on the development, organisation and competitiveness of industrial operations in emerging economies.
Carmakers quietly cut ties with China in supply chain shake-up

Over the past 20 years, China has risen from obscurity to become a global leader in the car parts industry. But international groups have now launched a quiet yet concerted effort to cut their reliance on China’s sprawling network of components makers. A key reason is their concern about a breakdown in China’s relations with the international community that could threaten trade. Although most international groups are unlikely to abandon the Chinese market because of its size, they expect the flow of components from the country to plants across the world to fall over time. | 27 December 2022

Samsung increases bet on Vietnam with USD 220m R&D hub

Samsung Electronics has launched a USD 220 million research and development center in Hanoi, planning to make Vietnam the company's key global strategic base, as the Southeast Asian country already produces half of the South Korean tech giant's smartphones. The facility marks the most concrete progress yet in Vietnam's struggle to move past cheap manufacturing and acquire tech know-how from Samsung.

Nikkei Asia | 23 December 2022

Tata to enter chipmaking in India

India's Tata Group will begin producing semiconductors in the country within a few years, a move that the chairman of the group's main company said will make the South Asian country a key part of global chip supply chains. In a recent interview with Nikkei Asia, Tata Sons Chairman N. Chandrasekaran revealed that the conglomerate plans to launch new businesses in emerging fields such as electric vehicles.

Nikkei Asia | 9 December 2022

The electric vehicle boom in a quiet Hungarian town

In just a few years, Hungary has transformed itself into a potential electric vehicles powerhouse, centred on Debrecen. By 2030, battery production in this town of 200,000 people alone will rival every European country other than Germany. The investment boom was ignited by German automaker BMW, which is building a Euro 2bn electric vehicle factory in the town. | 29 November 2022

H&M has big sourcing plans for Bangladesh

H&M has a big plan for sourcing for Bangladesh although the price will increase by up to 12 per cent following the country's graduation from the grouping of the least-developed countries in 2026. After becoming a developing nation, Bangladesh will lose its preferential market access and face 10 to 12 per cent duty on its exports. However, it will enjoy the duty preference in the European Union up to 2029 as the trade bloc has extended a three-year grace period.

The Daily Star | 17 November 2022

Foreign companies adopt "China for China" strategy

Rather than rely on Chinese factories to produce goods that are ultimately sold elsewhere, foreign companies are adopting a “China for China” strategy, which aims to draw on deeper research and development facilities in the country to make products for a vast, growing domestic market. | 15 November 2022

How is India emerging in the global manufacturing sector

India is on the road to becoming a major global manufacturing hub. Through the implementation of different programmes and policies, the Indian government hopes to have 25% of the economy’s output come from manufacturing by 2025.

The Times of India | 14 November 2022

Latin America: The role of nearshoring in shoring up supply chains

While Latin America will not replace China anytime soon, nearshoring in the region is not only feasible but also a concrete reality that has the potential to bring substantial supply chain benefits to producers, to consumers, and to the nations that have competitive assets in manufacturing and services.

The Wilson Quarterly | Fall 2022

Chinese electric carmakers take on Europe

For years, China’s own carmakers were confined to their home market, and even there struggled to compete with western or Japanese brands with petrol engine models. But the advent of electric vehicles has given the brands their first shot at dominance — not just in their own market, but finally on the international stage. | 27 October 2022

Vietnam wires into global electronics

Between 2010 and 2020, exports of electronics, computers and components from Vietnam grew at an average annual rate of 28.6 per cent. This was mainly the result of domestic reforms in the mid-2000s, especially the 2005 Enterprises Law and the 2000 Investment Law, allowing foreign firms to acquire majority shareholdings in domestic enterprises.

East Asia Forum | 25 October 2022

Inside Schneider Electric's "Make in India, Make for the World" push

Schneider Electric, a specialist in energy management and automation, has recently laid the foundation of a new "smart factory" in Hydrabad, India. The company is betting big on leveraging domestic capacities to produce world-class products: 75% of whatever is produced in the new facility will be exported, and only 25% sold locally.

The Economic Times | 13 October 2022

After decades in China's shadow, South-East Asia has arrived

According to a recent Asian Development Bank report, South-East Asian nations are set to surpass China as the fastest-growing major economies in Asia. Malaysia, Indonesia and Thailand have forged ahead with a series of proactive trade and industrial policies, boosting domestic manufacturing. Thanks to its youthful and skilled workforce, and increasingly stable political environment, the region has also emerged as a top investment destination.

The National | 13 October 2022

Apple expands iPhone production in India in shift away from China

Apple has begun producing its iPhone 14 model in southern India less than a month after it was launched, as the company works to diversify its supply chains out of China and expand production in India. The increased production in India is a win for prime minister Narendra Modi’s government, which has been working to boost domestic manufacturing and exports through its “Make in India” campaign. | 26 September 2022

Vietnam's battle to climb the global value chain

Vietnam's success in attracting supply chain business has created a dilemma for policymakers. Whereas the country has recorded technology export growth that no substantial Asian rival has matched, it added little value of its own to these exports and has no homegrown tech champions.

Nikkei Asia | 21 September 2022

European companies forced to take a closer look at supply chains

Following the Covid pandemic and Russia’s invasion of Ukraine, shortfalls in the just-in-time model, where supply chains have to be as efficient as possible in terms of delivery times and cost, are now clear for all to see. Yet, while more attention has to be paid to due diligence on suppliers, the capacity to compile and analyse data is often not good enough. | 20 September 2022

How mobile device manufacturing is boosting growth in Egypt's electronics sector

Egypt’s manufacturing sector is not known for a high degree of specialization in electronics. But homegrown companies have forged a path for the manufacturing of local electronics, boosting Egypt’s potential to be a regional high-tech manufacturing powerhouse. | 16 August 2022

Indian toy manufacturers bolster production as demand rises; eye global markets

Favourable government policies have boosted domestic manufacturing and helped the industry to explore global markets and enhance exports. Increasing customs duties on imported toys and mandating Bureau of Indian Standards (BIS) certification requirements for imports have given the necessary push to the Indian toy industry.

Mint | 14 August 2022

South-east Asian manufacturers sweat as US mulls tougher tariff rules

The Generalized System of Preferences was established in the 1970s to help developing countries by reducing tariffs on up to 5,000 products, ranging from bags and jewellery to mattresses and car parts. It plays an important role in regional manufacturing — its top five beneficiaries include Thailand, Indonesia, Cambodia and the Philippines. However, the scheme, which covered about USD16bn in imports in 2020, has been inactive since the end of that year, when its most recent extension expired. | 7 July 2022

Why Mexico is missing its chance to profit from US-China decoupling

For American manufacturers scrambling to dodge newly imposed tariffs on Chinese imports, the attraction of moving production to their southern neighbour seemed clear. Mexico offered a skilled workforce, good road and rail connections, an established export industry and privileged trade access. However, between 2018 and 2021 the proportion of manufactured goods imported into the US from Mexico has barely changed. | 3 July 2022

Is time running out for Africa to industrialize?

Despite efforts made to industrialize, Africa's share of global manufacturing remains negligible. The continent’s industrialization is geographically limited with around two-thirds of value-added manufacturing taking place in just five nations; South Africa, Egypt, Morocco, Algeria, and Nigeria.

Africanews | 30 June 2022

How bad is China's manufacturing exodus?

China retains tremendous advantages as a manufacturing center built up over the past several decades, and its enormous and rapidly expanding domestic market provides a powerful incentive for investment in capacity of all kinds. So far, most of the manufacturing leaving China has been in lower-end processes. Southeast Asian nations, and even India, still have enormous hurdles to overcome in competing with China.

Nikkei Asia | 28 June 2022

Why India isn't a global manufacturing hub

India is a country of 1.4 billion people with a rising middle class. On the face of it, the country presents untapped growth potential. Why would companies not want to grow their manufacturing footprint in the fastest-growing economy? Especially when the world’s factory, China, is struggling with serious economic challenges. The answer lies somewhere in the complexities of an uncertain and volatile regulatory landscape. 

Forbes India | 27 June 2022

Comparing Mexico and Indonesia as manufacturing hubs for US investors

With the trade war between the US and China showing no signs of abating, Indonesia and Mexico are becoming increasingly important to US businesses engaging in manufacturing operations. Both countries represent good investment destinations for companies with a China footprint seeking to diversify their supply chains.

ASEAN Briefing | 1 June 2022

Electric vehicles accelerate China's looming dominance as car exporter

The opening of Tesla’s Shanghai factory in 2019 was a breakthrough for electric vehicles and for overseas carmakers: it was the first wholly foreign-owned plant in the world’s largest car market. But it also marked the start of an even bigger trend, which promises to upend the structure of global manufacturing, bring a new wave of deindustrialisation to Europe and trigger trade tensions of an intensity to match the 1980s. That trend is the emergence of China as a car exporter. | 1 June 2022

Textiles & Apparel: Is Turkey an emerging global sourcing hub?

COVID-19 has impacted the global supply chains and made textile and apparel sourcing difficult. Turkey with its skilled workforce, production flexibility, and years of experience has emerged as a viable location for textiles and apparel sourcing. But it has its fair share of challenges.

Fibre2Fashion | June 2022

Vietnam fires digital salvo to become manufacturing center

There was a time when manufacturing operations moved to new locations because setup costs and labor were cheaper. This is what underpinned China’s significant advance earlier this century. More recently, it has worked for Vietnam, which has also benefitted from the US-China freeze as it ramps up its manufacturing sector. However, there appears to be a new differentiator: the implementation of smart factory technologies and processes. And once again, Vietnam is leading the charge.

CDOTrends | 30 May 2022

India on path to becoming global manufacturing hub for electric vehicles

India’s electric vehicle (EV) segment has witnessed sales growth of 218% in 2021-2022 as compared to the previous fiscal year with the onset of favourable government policies, incentive schemes, and subsidies. The commitment to achieve 100% e-mobility by 2030 along with central and various state governments’ policies and schemes have been driving the nation’s EV segment at an exponential speed. FAME, or Faster Adoption and Manufacturing of Electric vehicles is currently India’s flagship scheme for promoting electric mobility.

The Times of India | 20 May 2022

Indonesia's top drugmaker Kalbe Farma to boost ASEAN expansion

Top Indonesian drugmaker Kalbe Farma has announced the establishment of a joint venture in the Philippines as the company expands across Southeast Asia. Kalbe will control 60% of Kalbe Ecossential International, while Philippine consumer goods distributor Ecossential Foods will hold the remaining 40%. The joint venture is expected to help increase Kalbe's sales of its nutrition products in the Philippines before later introducing others such as prescription and over-the-counter drugs, as well as herbal medicines in Southeast Asia's second most populous nation after Indonesia.

Nikkei Asia | 19 May 2022

Africa faces hard knocks as rich countries take manufacturing back home

The global economic crisis, triggered by the outbreak of the COVID pandemic in 2020 and Russia’s invasion of Ukraine in February this year, has intensified the risk of declining trade integration between countries. For Africa, a deglobalising world poses serious risks. According to a recent World Bank report, reversing globalisation through the reshoring of value chains has the potential to push an additional 52 million people into extreme poverty.

The Conversation | 25 April 2022

India: Philips starts manufacturing radio frequency coils under PLI scheme

Philips India has started manufacturing radio frequency (RF) coils, used in Magnetic Resonance Imaging (MRI) systems, in the country. India has become the hub for manufacturing these MR coils for Philips globally. These products are also being supplied to other OEMs across the world. Philips was among the first companies to avail of the government’s production-linked incentive (PLI) scheme that supported local manufacturing of the MR coil.

Financial Express | 23 April 2022

Morocco turns to hi-tech manufacturing

Making the most of its geographical position on the edge of Europe, Morocco’s economic success over many years had been built on low-cost manufacturing of food, textiles and other lower cost goods that benefited from trade deals with the European Union. Now, however, the focus has switched to higher value, higher tech sectors, such as pharmaceuticals, aerospace and the automotive sector, with Moroccan companies working with international partners to build integrated supply chains.

African Business | 19 April 2022

U.S. companies face hurdles in moving production closer to home

Companies looking to make their supply chains more resilient with nearshoring strategies may only be bringing production problems closer to home, experts say. U.S. importers who are studying shifting their sourcing from the Asia-Pacific region to Mexico and deeper into Latin America are finding it tougher to find suppliers with the right raw materials, production quality and networks for getting their own components that have been established in manufacturing hubs like China and Southeast Asia. Reproducing that capacity and re-creating clusters of suppliers under a nearshoring strategy will take years.

The Wall Street Journal | 18 April 2022

Help wanted: tech firms in Vietnam seek Chinese speakers

The rising demand for Vietnamese employees who speak Chinese is just the latest symptom of factories shifting to the south-east Asian nation. Higher costs and risks in China, including its trade war with the US, motivated companies from many countries to make the shift. But among Vietnam’s major investors, mainland China made the biggest leap — its cumulative investment doubled in the past five years. When also factoring in the increases from Taiwan and Hong Kong, the shortage of workers who can translate between Chinese and Vietnamese becomes even more profound. | 21 March 2022

China tech champions Luxshare, Goertek move into chip assembly

Two of Apple's most important Chinese product assemblers are venturing into chip packaging for the iPhone maker. For Apple, having two more chip assemblers in its supply chain gives the California tech giant more bargaining power. For Beijing, having domestic companies move up the value chain and into the more technology-intensive arena of semiconductors helps it to build a fully independent chip industry that is insulated from U.S. crackdowns and other geopolitical pressures.

Nikkei Asia | 16 March 2022

How Southeast Asia is getting ready for the electric vehicle revolution

Governments in Southeast Asia are floating very ambitious plans to capture a share of the electric vehicle market. The aim is to create various opportunities for the regional industry, both for the export business as well as domestically.

The Jakarta Post | 16 March 2022

India's semiconductor push is well worth it

As the IC (integrated circuits) business accounts for more than 80 per cent of the total economic value of the semiconductor market, it is high time India takes steps to create an ecosystem for attaining self-reliance. A typical semiconductor value chain includes strong research and development followed by design, production, assembly, testing and distribution and logistics network.

The Hindu Business Line | 13 March 2022

Indonesia's newest province chases USD 132bn industrial dream

Indonesia's newest province on Borneo island, North Kalimantan, holds the key to the government's ambition to transform Indonesia into a high-tech, low-carbon economy. The green industrial park in North Kalimantan is expected to become a primary showcase of the country’s economic transformation.

Nikkei Asia | 7 March 2022

Great Wall Motor ploughs USD 1.9bn into Brazil as global expansion picks up

The Baoding-headquartered group will open its biggest operation outside China at a former Mercedes-Benz factory in the interior of São Paulo state, serving as an export hub in Latin America. The Brazil venture reflects the importance of Latin America to Chinese carmakers in their efforts to diversify markets and access resources. | 28 January 2022

Rising exports mask skills gap in Cambodia's garment industry

Cambodia's garment industry already employs over 750,000 people and generates more than a third of the country's gross domestic product. But it also suffers from a wider problem plaguing the economy: it is built on low-skilled, low-cost labor, a model that some say will eventually catch up with the nation.

Nikkei Asia | 21 January 2022

A plot to challenge Beijing's growing clout in manufacturing

With trade wars and rising wage rates having dented the relative advantage of Chinese manufacturing, the pandemic and the resulting quest to diversify global supply chains has encouraged some countries to reinvent themselves as manufacturing hubs catering to demand from the rest of the world.

The Economic Times | 19 January 2022

Why manufacturing is driving Vietnam's growth

As global businesses seek to diversify, increase resiliency and connectivity of their supply chains and decrease reliance on a single country, Vietnam has become a top destination for investment in manufacturing due to its strategic location and advantages in shipping, competitive labor, and production costs.

Vietnam Briefing (Dezan Shira & Associates) | 4 January 2022

Hugo Boss moves production closer to home to shorten supply chain

German fashion house Hugo Boss is expanding production capacity closer to its base in Europe to reduce its dependence on south-east Asia at a time when global supply chains are under severe pressure. Facing supply chain disruptions with supply shortages, delays and higher shipping costs, Hugo Boss is enlarging its factory in Izmir, Turkey, where it plans to hire almost 1,000 more workers, increase staff by a third and invest more in machinery and tools. | 30 December 2021

China lays out five-year plan to be global robotics hub

China has unveiled a five-year plan to drive its ambition of becoming a global innovation hub for robotics by 2025. It hopes to get there by focusing on enhancements in key components such as servomotors and control panels. The Chinese government is expecting high-end advanced robots to be adopted across more sectors, including automobile, aerospace, railway, logistics, and mining.

ZDNet | 29 December 2021

Shein: the Chinese company storming the world of fast fashion

Shein has seized over a quarter of the US fast-fashion market and its rapid growth threatens to disrupt established global players such as Spain’s Inditex and Sweden’s H&M. The business is built around the fast-fashion model pioneered by others, including Inditex’s Zara. But through use of automation, artificial intelligence and a well-drilled supply chain, Shein has found a way to do it both cheaper and faster. | 9 December 2021

Lego to invest USD 1bn in new Vietnam factory

Danish toymaker Lego is to invest more than USD 1bn in building a factory in Vietnam to respond to increased demand in Asia and to make its supply chain more resilient following a series of shocks from Covid-19. It will be the sixth factory for the world’s largest toymaker following one in China, three in Europe and one in Mexico, and will mostly serve south-east Asian countries as Lego looks to capitalise on the rise of the middle-class in the region. | 8 December 2021

Why companies are flocking to Batu Kawan Industrial Park (in Penang, Malaysia)

The Batu Kawan Industrial Park — part of a comprehensive master plan to develop 7,000 acres on Batu Kawan Island — houses about 160 companies, comprising a mix of foreign multinational corporations and local companies. Business leaders highlight the key factors that contributed to their decision to invest in Batu Kawan, namely: the availability of skilled labour, proximity to their regional customers, and ease of doing business.

The Edge Markets | 18 November 2021

The prescription for India to create USD 400 billion in annual economic impact: Double down on manufacturing

India’s manufacturing revolution will increasingly need to be driven by large, global-scale conglomerates. Building global scale companies is an area where India lags significantly.

The Economic Times | 15 November 2021

Retailers lose love for Asia: Snarled supply chains force manufacturing exodus to Balkans, LatAm

Major clothing and shoe companies are moving production to countries closer to their U.S. and European stores, smarting from a resurgence in cases of the Delta variant of the coronavirus in Vietnam and China that slowed or shut down production for several weeks earlier this year. Their announcements come amid a massive shipping logjam that is driving up costs and forcing companies to rethink their globe-spanning supply chains and low-cost manufacturing hubs in Asia.

Reuters | 14 November 2021

China's Oppo joins race to develop own smartphone chips

China's leading smartphone maker Oppo is developing high-end mobile chips for its premium handsets in a bid to gain control over core components and reduce its reliance on foreign semiconductor suppliers Qualcomm and MediaTek. It is a bet on differentiating itself from other smartphone makers and softening the blow from the global processor shortage.

Nikkei Asia | 20 October 2021

How Morocco transformed itself into a carmaking hub

Despite modest local sales, Morocco has gained critical mass as an automotive manufacturing hub. In 2018, the kingdom surpassed South Africa as the biggest exporter of passenger cars on the continent. The Moroccan car industry now directly employs some 220,000 people, most of whom work for roughly 250 suppliers that have sunk roots in the country since carmakers began to gain real traction more than a decade ago. | 12 October 2021

China develops passenger jet, but 40% of parts suppliers are overseas

A Chinese-made passenger jet set to compete with American and European rivals counts roughly 40% of its core component suppliers as overseas companies, exposing the risks posed by U.S. trade frictions to a plane that has been under development for more than a decade. Chinese companies are supplying the fuselage and the wings. But a host of Western suppliers are providing the brains and heart of the plane -- the communication and flight control systems, among other core components.

Nikkei Asia | 2 October 2021

Fashion industry production is shifting to closer regions like Turkey

Fashion brands like Benetton are increasingly turning away from globe-spanning supply chains and low-cost manufacturing hubs in Asia, in a shift that could prove a lasting legacy of the coronavirus pandemic. Italy's Benetton is bringing production closer to home, boosting manufacturing in Turkey, Serbia, Croatia, Tunisia and Egypt, with the aim of halving production in Asia from the end of 2022.

Daily Sabah | 30 September 2021

COVID surge in Southeast Asia disrupts global supply chains

The COVID-19 pandemic and the resulting massive production disruptions in Southeast Asia will lead to greater diversification and a major reshaping of global supply chains, according to experts. The lockdowns and other measures have shown how stretched and fragile global supply chains are today. Having so many key industries like electronics and textile production concentrated in just a few places has been bad for many businesses.

Deutsche Welle | 5 September 2021

Reshoring – not as easy as it seems

Reshoring has shot up the trade lexicon as ties with China, the «factory of the world», become more unsettled and the pandemic pummels global supply chains. A growing number of executives say they want to diversify away from the Asian giant and make supply chains more resilient. However, many find reshoring is far from straightforward.

Global Trade Review | 12 August 2021

India's opportunity to become a global manufacturing hub

As global companies adapt their manufacturing and supply chain strategies to build resilience, India has a unique opportunity to become a global manufacturing hub. It has three primary assets to capitalize on this unique opportunity: the potential for significant domestic demand, the Indian Government’s drive to encourage manufacturing, and a distinct demographic edge, including a considerable proportion of young workforce.

Modern Diplomacy | 3 August 2021

Airbus expanding local supply chain in China

The reshaping of Airbus’ global supply chain during the pandemic will shift greater focus to China, the world’s fastest growing aviation market. According to the company’s Head of Procurement in China and East Asia, Airbus is building a «vertical integration supply chain» to source parts and materials, assemble, and deliver aircraft locally. The strategy will «lower costs of transportation and raise efficiency», adding that Airbus will also work collaboratively with local Chinese suppliers to bring them «in line with global Airbus standards», strengthening its ties and capabilities across the territory.

Supply Chain Digital | 3 August 2021

China's Baowu unseats ArcelorMittal as world's top steelmaker

China Baowu Steel Group became the world's largest steelmaker by volume in 2020, making it the first company to overtake ArcelorMittal in 19 years and the first Chinese player to climb to the top of the list. China's steelmakers have undergone major streamlining drives to curb overcapacity even as domestic demand remained strong. With seven of the world's top 10 producers now based in China, the country has emerged as a powerhouse in steel over veteran industry leaders like Japan.

Nikkei Asia | 9 July 2021

East Asia must adapt to retain its economic advantages

Global value chains have long formed the backbone of economic growth and trade, especially in East Asia. However, East Asia must not rest on its laurels and must continue to evolve. Low labor costs will always be attractive, but the quality of institutions, human capital and infrastructure can outweigh cost considerations when it comes to global value chain strategies.

Nikkei Asia | 14 June 2021

IKEA to help suppliers in India transit to 100% renewable power

Swedish home furnishing retailing major IKEA will launch a programme in India, Poland and China, helping suppliers there transit to 100 per cent renewable electricity. Under this initiative, the company would invest and support nearly 1,600 direct suppliers. By switching to renewable electricity, these suppliers will save 670,000 tonne of emissions per year, which is equivalent to approx 3 per cent of the total climate footprint of the IKEA value chain.

The Economic Times | 11 June 2021

The opportunity is ripe for India to develop as a global medtech hub

India happens to be the fourth largest-medical devices market in Asia and also holds the promise of the highest growth potential among all areas of the healthcare industry. Given this scenario the Indian medical devices industry has the prospect of becoming one of the biggest contributors to India’s health infrastructure, much the same way that the pharma industry has done.

The Times of India | 9 June 2021

FDI supports Vietnam climb the global value chain

Vietnam has successfully transformed into a manufacturing-oriented economy, supported by stronger global value chain participation following a rise in foreign direct investment, especially in the manufacturing industry. Over the past two decades, Vietnam's exports have diversified and grown exponentially, reaching USD 264 billion in 2019 — a 48-times increase from USD 5.5 billion in 1995 when it joined ASEAN. | 7 June 2021

Chinese supply chains prove resilient to global shocks and pressure

The trade war between the United States and China and the COVID-19 pandemic have highlighted the vulnerability of complex global supply chains. These developments have prompted a re-evaluation of existing approaches to global sourcing and manufacturing activities to increase supply chain resilience and reduce external risks. It is not yet clear how China-centred supply chains have been affected. From preliminary evidence, the impact has not been uniform across industries. Instead, strategies of firms and industries may be heavily dependent on their relative ease of adjusting to external changes.

East Asia Forum | 27 May 2021

Foxconn the carmaker? Disruption in the era of electric vehicles

Foxconn is spearheading an entire class of electronics companies vying for a role in the carmaking industry. Pegatron, another Taiwanese company that began life making iPhones, is now assembling parts for electric cars for Tesla. Delta Electronics, a Taiwanese manufacturer of a wide range of power electronics components, makes EV charging modules and powertrains — the components that convert the engine’s power into movement. Their push into the automotive supply chain heralds a turning point in industrial history: the integration of two of the world’s largest industries — car manufacturing and electronics — which will both change beyond recognition. | 17 May 2021

Chinese carmaker GAC presses ahead with Myanmar factory plan

Guangzhou Automobile Group (GAC) is pressing ahead with plans to start manufacturing vehicles in Myanmar this year as part of the Chinese state-owned group's ambitious internationalization plan. According to industry experts, the Chinese domestic market is increasingly mature, forcing automakers to find new markets for their huge production capacity. Last year, GAC opened its first offshore factories in Nigeria and Tunisia, while signing a deal with a Malaysian assembler to explore the possibility of building and selling its vehicles there and in Vietnam.

Nikkei Asia | 22 April 2021

Despite the "Make in India" push, the share of manufacturing sector in the GDP has stayed stagnant

India has attempted to give an impetus to the manufacturing sector on multiple occasions in the last decade. In 2014 Prime Minister Narendra Modi launched the Make in India campaign in a bid to transform India into a global manufacturing hub. After the pandemic pushed India into its worst economic contraction since liberalisation in 1991, Modi, yet again, pitched India to become the world’s factory in an effort to capitalise on the United States-China trade war. These efforts have yielded little result with the share of manufacturing in GDP remaining stagnant at about 17%. | 13 April 2021

Fashion, Xinjiang and the perils of supply chain transparency

Fashion has found itself caught in the political crosshairs between western and Chinese governments, forced to choose between the demands of human rights groups, western consumers and their own employees on the one hand, and the impulse to please China and its consumers in the world’s second-largest economy on the other. | 9 April 2021

In charts: Asia's manufacturing dominance

Decades of investment from wealthy economies into lower-cost locations have entrenched geographical shifts in manufacturing. Production of semiconductors — the essential components of our digital infrastructure, vehicles and devices — has steadily declined in the west, with East Asia emerging as the main manufacturing hub. The US’s share of global semiconductor manufacturing capacity fell from 37 per cent in 1990 to just 12 per cent last year, while Europe saw a 35 percentage point decline in the period, to 9 per cent. China’s mainland expanded its share from almost nothing to 15 per cent, a figure that is expected to rise to 24 per cent in the next decade. | 24 March 2021

Brazil's jet maker Embraer eyes home turf of China's COMAC

Brazilian jet maker Embraer, the world's top manufacturer of small passenger jets called regional jets, aims to expand its share in China. But China has its own homegrown aircraft maker, Commercial Aircraft Corp. of China (COMAC), and is keen to see the country's three major state-owned airlines use COMAC jets.

Nikkei Asia | 19 March 2021

China is still a tier-3 manufacturer in global rankings

Although having become a large manufacturer, China lacks the control of core technologies making up the top end of the global value chain. According to Miao Wei, former Minister of Industry and Information Technology, China remains heavily dependent on imports of basic components and technologies (over 50 percent come from abroad), integrated circuits (80 percent imported), large-scale and high-quality imports of castings and forgings (90 percent imported), and imports of high-end hydraulic parts and seals (100 percent dependent on imports).

China Briefing | 19 March 2021

Geely taps Foxconn's playbook to build EVs for other carmakers

Geely, China's largest private-sector automaker, has taken the first step toward becoming the Foxconn of electric vehicles. Geely and Foxconn, the Taiwanese Apple assembler, are establishing a 50-50 joint venture that will manufacture whole electric vehicles for clients as well as parts. Just like Foxconn did with iPhones, Geely will pursue an economy of scale through contract manufacturing. Foxconn brings its expertise in procuring components and ability to produce quality digital products. Geely will provide the auto making know-how.

Nikkei Asia | 10 March 2021

SAIC's USD 4,500 electric car takes China by storm

Marketed as "the people's commuting tool", the Wuling Hong Guang Mini EV has been a big hit for state-owned SAIC Motor, China's top automaker. SAIC holds a majority stake in SAIC-GM-Wuling, the joint venture that produces and sells the car and is known locally as Wuling, and General Motors is a major shareholder as well. The boxy compact can travel 120 km on a full charge and has a top speed of 100 kph.

Nikkei Asia | 13 February 2021

Indian automakers make profits surpassing pre-COVID levels

Indian auto companies witnessed a sharp recovery in earnings in the last quarter of 2020, as the festival season boosted sales despite an economic slowdown and rising cases of COVID-19. The top three auto manufacturers — Maruti Suzuki India, Tata Motors and Mahindra & Mahindra — all posted profits for the first time since the pandemic hit in early 2020. It was also the best financial performance by the automakers in seven quarters in terms of both revenue and net profit.

Nikkei Asia | 8 February 2021

China to build USD 300bn electronics part sector in break with US

The Chinese government has announced plans to expand the domestic market for electronic components to USD 327 billion by 2023, in its latest step to bolster the nation's tech sector amid a growing rivalry with the U.S. The announcement covers components, materials and manufacturing equipment used in such areas as smartphones, drones, 5G wireless, connected factories, electric vehicles, robotics, high-speed rail and aerospace. China aims to increase the market for these components by 20% between 2019 and 2023 under an action plan that involves the development of 15 globally competitive electronic components makers with 10 billion yuan or more in annual sales.

Nikkei Asia | 30 January 2021

Vietnam courts chip investment to power up digital economy

Vietnam is moving to build a bigger digital economy, driven in part by semiconductor manufacturing, during the next five years and beyond as the Communist Party maps out a course that will take the country's economy to 2045. The digital economy’s contribution to gross domestic product is targeted to about 20% by 2025 and 30% by 2030. Making a shift to high-quality and value-added products is to play a major role in achieving the targets. Building a cluster of domestic chip industry is a potential move for Vietnam to climb up the value chain.

Nikkei Asia | 29 January 2021

Vietnam's Vingroup to export electric SUVs to US and Europe from 2022

Vingroup has unveiled a lineup of electric vehicles to gain a foothold in the American and European car markets. Vingroup subsidiary VinFast will produce three sport utility vehicle models that use artificial intelligence to run autopilot features such as steering, parking assistance and 3D mapping. Vingroup said it will start taking orders for the SUVs in November, with plans to deliver them to U.S., Canadian and European drivers in June 2022.

Nikkei Asia | 26 January 2021

Asean electronics companies still lag China in climbing global value chain

Despite ongoing supply-chain shifts into Southeast Asia, the Asean economies that have been key beneficiaries will still be hard-pressed to compete with mainland China. The Asean Quad – Malaysia, the Philippines, Thailand and Vietnam – has built a dominant presence in niche segments of the electronics industry, such as office equipment in the Philippines, computers and radio equipment in Thailand, and telecom equipment in Vietnam. However, while these countries have a lot to offer, China retains a competitive edge and has achieved economies of scale across multiple electronics goods segments.

The Business Times | 13 January 2021


Copyright © 2003 - 2024 Global Production Research Inc.

Legal Notices