Manufacturing in China and Exporting Globally ‘No Longer Viable’: Kyocera

The Epoch Times Header

Kyocera, one of the largest chip component manufacturers in the world, believes China can no longer play its role as the global factory amid heavy sanctions from the United States, and the company has begun shifting production to other places, including Japan.

“It works as long as [products are] made in China and sold in China, but the business model of producing in China and exporting abroad is no longer viable,” Hideo Tanimoto, president of Kyocera, said in an interview with the Financial Times. “Not only have wages gone up, but obviously, with all that’s happening between the United States and China, it’s difficult to export from China to some regions.”

Kyocera is building its first factory in Japan in almost 20 years.

On Oct. 7, 2022, the U.S. Department of Commerce announced new export restrictions on chip manufacturing and advanced semiconductors in a bid to prevent American technology from being used in the development of the Chinese military.

Tanimoto admitted that the U.S. export controls were a reason why the firm cut down its operating profit forecast for the year by 31 percent. Kyocera commands a 70 percent market share globally in ceramic components used in chip-manufacturing equipment.

“If chip equipment makers stop shipments to China, our orders will be somewhat affected … They are now even [being] asked not to ship their non-cutting-edge tools,” Tanimoto said.

Back in 2019, when the Trump administration had imposed tariffs on China, Kyocera had moved the manufacturing of copiers for the U.S. market from China to Vietnam.

Moving Production Out of China

Many companies have moved production out of China or plan to do so. In April last year, for example, Apple began manufacturing its iPhone 13 in India at a site owned by Foxconn, its Taiwanese contract manufacturer. In addition, Apple is sending the production of iPads and AirPods to Vietnam.

Samsung shifted production to Vietnam back in 2019. The company has also decided to manufacture its flagship Galaxy S23 smartphones in India for local sale. Amazon has shut down its Kindle facility in China and now produces FireTV devices in India.

By Naveen Athrappully

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Columns

Trans-wormal

No worm ever said "I am anthropomorphizing, I am a butterfly" to a toad or flock of geese and expected acknowledgement and support.

How a Chinese Government Statistician Was Forced to Report Fake Data

Chinese local govt employee produced a non-authorized report on bees and was visited by police and threatened with being sent to a mental hospital.

‘This One Time, at Groomer Camp’

All Camp Brave Trails programs focus on helping LGBTQ+ youth find what they need most to thrive: their people, their place, and their passion.

Why Recognizing a Palestinian State Now Undermines U.S. Interests 

A recent American Conservative article suggests President Trump recognize a Palestinian state, but this would undermine the interests of the United States.

Harvard’s China Ties Under Scrutiny as US Targets Student Visas

Following Trump admin’s action to vet Chinese nationals studying in US for ties to the CCP, Harvard's involvement with Beijing has come to the fore.

News

Guatemalan Deportee Arrives in US After Judge Orders Trump Admin to Facilitate Return

“America’s asylum system was never intended to be used as a de facto amnesty program or a catch-all, get-out-of-deportation-free card,” McLaughlin said.

Trump-Musk Feud Escalates Over Spending Bill: 5 Things to Know

A public feud between Musk and Trump took a turn for the worse. Musk claimed president wouldn’t have won without him and president suggested Musk’s subsidies could be pulled.

Supreme Court Rules 9-0 Wisconsin Violated First Amendment by Denying Tax Exemption to Catholic Charity

Supreme Court ruled unanimously that WI violated the First Amendment by not granting Catholic charity an exemption from paying unemployment tax.

Appeals Court Rules San Diego’s Yoga Ban Is Unconstitutional

The city of San Diego’s ban on yoga classes in public parks and beaches was ruled unconstitutional by a federal appeals court.

Supreme Court Rejects Mexico’s Lawsuit Against Gun Companies

SCOTUS said gun companies should not face lawsuit in which Mexican govt was trying to hold them liable for cartel-related violence involving firearms from US.

FDA Not Recommending Newly Approved COVID-19 Vaccine: Official

FDA approved a new COVID-19 vaccine but is not recommending people receive it, the agency’s top vaccine officials said on June 4.

Self-Sufficiency Summits in Ohio Reflect Surging Interest in Homesteading

After an age of reliance on store-bought items, many Americans are returning to a self-sufficient lifestyle and growing and raising the food they consume.

Judge Requires Trump Admin to Provide Due Process for Deportees in El Salvador Prison

Boasberg ordered Trump admin to provide habeas relief for individuals it deported and are held in Salvadoran maximum security prison.
spot_img

Related Articles