APCB relocates production to China and announces layoffs

The Taiwanese printed circuit board manufacturer APCB plans to cease its production on the island by the end of the year and lay off hundreds of employees. The company cites the relocation of manufacturing to a subsidiary in mainland China as the reason for this move. Production in Taiwan will be halted from December 25, after APCB's plants there suffered losses for three consecutive years. The company attributes this to the weakening consumer electronics sector and increased raw material costs, as highlighted in a statement to the Taiwan Stock Exchange. At a press conference, APCB's Chief Financial Officer Tsai Cheng-hung stated that some employees in research and development as well as sales will remain in Taiwan. However, all orders will be handled by the production facility in Kunshan, Eastern China. This restructuring will lead to the dismissal of around 360 employees, with approximately 50 staff continuing to work on the island. Following this announcement, APCB’s shares suffered a nearly 10 percent drop on Wednesday. APCB's production facility in Kunshan, with nearly 1,800 employees, exceeds the capacities of the other plants. The company has already sold its production facility in Thailand, with more than 1,000 workers, to a Chinese rival. This strategic shift underscores the continued significant role of China in the global electronics supply chain. Other leading Taiwanese printed circuit board manufacturers, such as Zhen Ding Tech Group, are also increasing their investments in mainland China and Southeast Asia.