Megaforce Co (英濟) yesterday said that it would add capacity in Taiwan and Malaysia to handle customers moving production outside of China to avoid fallout from trade tensions.
The plastic injection molding company company said that it aims to provide “agile” capacity — allowing customers to minimize risks stemming from the US-China trade row — by joining other local electronics suppliers in deploying additional production sites throughout Asia.
Megaforce said that it plans to increase production at a new plant in Chiayi County’s Minsyong Township (民雄) in the first quarter of next year in an effort to triple its domestic production within three years.
The company operates a manufacturing facility in New Taipei City’s Tucheng District (土城).
“With the new capacity in Taiwan, the company will be able to help customers develop and produce 5G-enabled smart home devices and satisfy customer demand after shifting production back home,” Megaforce chief executive officer Hsu Wen-lin (徐文麟) said in a statement.
The firm also seeks new business opportunities by collaborating with Taiwanese businesses to produce high-end products, Hsu said.
Tucheng-based Megaforce last year generated about 70 percent of its NT$4.83 billion (US$159.88 million) revenue from plastic components used in electronics and PC peripherals, such as mouses, smart speakers and networking devices.
Networking equipment supplier Wistron NeWeb Corp (啟碁科技), a customer of Megaforce, also plans to invest NT$2.69 billion by expanding its Hsinchu factory and adding production lines in an effort to diversify risk from the US-China trade spat.
Megaforce said in a statement that it is expanding to Malaysia and plans to start operations at a new factory there in the first quarter of next year, as electronics “brands are gradually reducing production in China and moving assembly lines to Southeast Asia.”
The company also plans to increase capacity at its Mexican factory to meet growing demand from existing clients, as Mexico overtook China and Canada to become the US’ biggest trading partner in the first half of this year, it said.
The capacity expansion would also meet new demand from electronics makers that have moved production to Mexico, it added.
RUN IT BACK: A succesful first project working with hyperscalers to design chips encouraged MediaTek to start a second project, aiming to hit stride in 2028 MediaTek Inc (聯發科), the world’s biggest smartphone chip supplier, yesterday said it is engaging a second hyperscaler to help design artificial intelligence (AI) accelerators used in data centers following a similar project expected to generate revenue streams soon. The first AI accelerator project is to bring in US$1 billion revenue next year and several billion US dollars more in 2027, MediaTek chief executive officer Rick Tsai (蔡力行) told a virtual investor conference yesterday. The second AI accelerator project is expected to contribute to revenue beginning in 2028, Tsai said. MediaTek yesterday raised its revenue forecast for the global AI accelerator used
TEMPORARY TRUCE: China has made concessions to ease rare earth trade controls, among others, while Washington holds fire on a 100% tariff on all Chinese goods China is effectively suspending implementation of additional export controls on rare earth metals and terminating investigations targeting US companies in the semiconductor supply chain, the White House announced. The White House on Saturday issued a fact sheet outlining some details of the trade pact agreed to earlier in the week by US President Donald Trump and Chinese President Xi Jinping (習近平) that aimed to ease tensions between the world’s two largest economies. Under the deal, China is to issue general licenses valid for exports of rare earths, gallium, germanium, antimony and graphite “for the benefit of US end users and their suppliers
Dutch chipmaker Nexperia BV’s China unit yesterday said that it had established sufficient inventories of finished goods and works-in-progress, and that its supply chain remained secure and stable after its parent halted wafer supplies. The Dutch company suspended supplies of wafers to its Chinese assembly plant a week ago, calling it “a direct consequence of the local management’s recent failure to comply with the agreed contractual payment terms,” Reuters reported on Friday last week. Its China unit called Nexperia’s suspension “unilateral” and “extremely irresponsible,” adding that the Dutch parent’s claim about contractual payment was “misleading and highly deceptive,” according to a statement
The Chinese government has issued guidance requiring new data center projects that have received any state funds to only use domestically made artificial intelligence (AI) chips, two sources familiar with the matter told Reuters. In recent weeks, Chinese regulatory authorities have ordered such data centers that are less than 30 percent complete to remove all installed foreign chips, or cancel plans to purchase them, while projects in a more advanced stage would be decided on a case-by-case basis, the sources said. The move could represent one of China’s most aggressive steps yet to eliminate foreign technology from its critical infrastructure amid a
RSS