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Business trends

Tariffs benefit Japan's contract manufacturers in Southeast Asia

Experience in region helps capture production fleeing China

Japanese contract electronics manufacturers with plants in Thailand and other parts of Southeast Asia are enjoying a boom as production moves out of China.

TOKYO -- As U.S. tariffs on Chinese goods spur manufacturers to rethink their supply chains, the upheaval offers big opportunities for Japanese contract electronics makers with ties to Southeast Asia.

Kaga Electronics plans to invest 500 million yen ($4.71 million) to build a second factory in Thailand, slated to open in December. The project in Chonburi Province, announced on Sept. 3, is intended to meet rising demand for circuit boards from printer makers expanding production in the country.

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