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.
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