Taiwan’s Quanta to build production base in SE Asia amid U.S.-China trade row

08, Oct. 2019

TAIPEI, NNA – Taiwan’s major electronics manufacturing service firm Quanta Computer Inc. will establish a production base in Thailand to avoid possible higher U.S. tariffs on laptop computers shipped from China.

One of the world’s largest laptop PC makers will mark its first ever move into Southeast Asia, a Quanta spokeswoman told NNA Monday.

The Taiwan firm will set up there a wholly owned subsidiary, QMB Co., with a capital of 1 billion baht ($32.8 million), aiming to buy or rent existing factories amid fears of the imposition of a 10 percent additional tariff on the product on Dec. 15.

The move is “in response to the U.S.-China trade spat, while at the same time providing more choices on production bases beyond China for our clients,” she said.

Quanta has operational bases in Taiwan, mainland China, North and Latin America and Europe, according to the spokeswoman.

The initial capital will be used in phases, and how much more will come depends on demand from our customers, she added.

Quanta said in a statement Friday that it has also decided to build a third production facility near its headquarters in Taoyuan City in the northern part of the island by investing up to $950 million New Taiwan dollars ($31 million).

The spokeswoman declined to comment on production capacity at the facility in the Taiwanese city.