In one of the previous articles, we mentioned some of the top regions and countries for outsourcing electronics manufacturing. In this post, we decided to write about some of these countries in detail. We’ll cover the pros and cons of these locations, local export regulations, and some of the top local EMS providers.
Our team specializes in developing embedded electronics and software. After you contact HHD, we study your project, develop the product, test it, and hand over the design documents to you. Your next move is to organize mass manufacturing. Companies that don’t own manufacturing facilities outsource this task to EMS providers, including those located abroad. In the first part of this post, we talked about China, Taiwan, the U.S., and Mexico as potential locations for electronics production. Now, we would like to discuss Thailand, Vietnam, Malaysia, and India.
Malaysia
Since China remains the world’s largest electronics powerhouse, it totally makes sense to consider it your number one option.
Benefits
- Advanced E&E industry
The country is one of the key global players in the electrical and electronic industry, which makes it one of the best countries for electronics manufacturing. In September 2023, E&E products accounted for 43.7% of its total exports. Malaysian manufacturers produce passive components, PCBs, consumer electronics, and industrial equipment. Additionally, corporations such as Intel and AMD started operating in Malaysia in the 1970-80s, so there’s no lack of highly skilled professionals specializing in electronics.
- Low labor costs
Factory and manufacturing average salaries in Malaysia are lower than in Thailand.
- Business-friendly environment and no export taxes
The country ranks 12th in the World Bank’s 2020 Doing Business Report. The government has introduced many initiatives to boost Malaysia’s electronics production industry. On top of that, almost all goods have zero export duties except for the country’s main commodities: petroleum, crude oil, and palm oil. You can see the rates in the Customs Duties Order 2022.
Challenges
- Limited capacity
Like other small countries, Malaysia has a limited labor pool, which makes it challenging to launch large-scale production there.
- Import dependence
Malaysia’s electronics production is highly dependent on imports of machinery and raw materials from other countries, which may become a problem if the political situation in the region escalates.
Some of the Top EMS Providers in Vietnam:
- Asia Printed Circuit Sdn. Bhd.
- LKL Sunrise Electronics(M) Sdn Bhd.
- RONNIE ELECTRONICS
- BCM Electronics Corporation Sdn. Bhd.
- VISION
- Supreme PCB Solutions. Sdn. Bhd.
- AR Dynamic Technology Sdn. Bhd.
- Inovus Technology
- Silvtronics
- Qdos Tech
