Taiwanese Memory Module Manufacturers Flee China

Since China's GDP approached and overtook that of the most important economic indicator in the United States five years ago, the authorities of the Middle Kingdom have ceased to be accommodating and complaisant at the international level. This forces the US authorities to move to the imposition of sanctions in the form of protective duties. So, last week, trade duties on a wide range of goods made in China have been increased from 10% to 25%, which will result in losses for the Chinese economy at the level of $200 billion.

Since these losses will be distributed among manufacturers of goods and their counterparts in the United States, tariff increases will hit the Chinese economy not only and not so much directly, but also indirectly, forcing manufacturers to flee the country or accept losses, including the loss of competitiveness of Chinese production. . A few years ago this started to be a problem. In 2008, labor laws in China changed, which caused an increase in wages in the country. After that, part of the production was transferred to the poorer countries of Southeast Asia, for example, to Vietnam. In other words, the increase in tariffs only intensified the process of the flight of manufacturers from China, but did not become something new for the country. And yet, many were not ready for it.

Как сообщает Taiwanese Internet resource DigiTimes, in Taiwan, at the factories of some manufacturers of memory modules, real chaos is now happening. Manufacturers are keen to move part of their production from China back to Taiwan as soon as possible. On the mainland, only those lines that serve the local market will remain in operation, while lines for the production of memory modules for the United States will operate in Taiwan. The transfer process did not start today, as the threat of tariff hikes has been in the air since last year. However, manufacturers were not ready to resolve the issue of transferring production in the shortest possible time.

The situation of memory module manufacturers is aggravated by the fact that memory is getting cheaper. They earn less on their product than memory chip manufacturers. So they will not be able to offset the costs by expanding the release of memory modules. Companies in this sector will have to balance on the verge of loss.

Source: 3dnews.ru