Shimadzu ramping up PCB output in Philippines to boost competitiveness in equipment

28, Jan. 2020

Workers at Shimadzu Philippines Manufacturing Inc.'s factory in Cavite Province, south of Manila on Nov. 22, 2019. (NNA)
Workers at Shimadzu Philippines Manufacturing Inc.'s factory in Cavite Province, south of Manila on Nov. 22, 2019. (NNA)

By Makiko Ohori

MANILA, NNA – Japanese analytical device and medical equipment maker Shimadzu Corp. is ramping up printed circuit board (PCB) output in the Philippines in a bid to boost competitiveness in equipment for the global healthcare market.

The company is capitalizing on lower PCB production costs in the country, around 15 percent less than in Japan. PCBs are used as one of the core parts for a series of its equipment, Katsuhide Takimoto, president of Shimadzu Philippines Manufacturing Inc., told NNA.

The Kyoto-based firm produces 80 percent of all PCBs in Japan in value terms and 20 percent in the Philippines, exporting the products to equipment factories under the group such as those in China and Malaysia, he said in an interview last November.

As the company sees global growth in demand for medical equipment on the back of the aging population in China and Southeast Asian countries, in addition to Japan, the Philippine manufacturing unit has doubled its PCB production capacity from fiscal 2017 to the current business year ending in March, according to Takimoto.

Analytical devices are also in demand amid tightening environmental regulations worldwide. In the meantime, the local arm has almost quadrupled its export volume to 470,000 units per year, Takimoto said.

“In the next five to 10 years, we aim to replace all the PCBs used at overseas equipment factories with those shipped from the Philippines,” the president said. Production bases at home do not have further space to expand their output capacity.