Devices for Japan, U.S. and Europe to be made in Thailand

KEIICHI FURUKAWA, Nikkei staff writer January 29, 2023 05:09 JST

TOKYO -- Sony Group has transferred production of cameras sold in the Japanese, U.S. and European markets to Thailand from China, part of growing efforts by manufacturers to protect supply chains by reducing their Chinese dependence.

Sony's plant in China will in principle produce cameras for the domestic market. Until now, Sony cameras were exported from China and Thailand. The site will retain some production facilities to be brought back online in emergencies.

After tensions heightened between Washington and Beijing, Sony first shifted manufacturing of cameras bound for the U.S. The transfer of the production facilities for Japan- and Europe-bound cameras was completed at the end of last year.

Sony offers the Alpha line of high-end mirrorless cameras. The company sold roughly 2.11 million units globally in 2022, according to Euromonitor. Of those, China accounted for 150,000 units, with the rest, or 90%, sold elsewhere, meaning the bulk of Sony's Chinese production has been shifted to Thailand.

On the production shift, Sony said it "continues to focus on the Chinese market and has no plans of exiting from China."

Sony will continue making other products, such as TVs, game consoles and camera lenses, in China for export to other countries.

The manufacturing sector has been working to address a heavy reliance on Chinese production following supply chain disruptions caused by Beijing's zero-COVID policy.

Canon in 2022 closed part of its camera production in China, shifting it back to Japan. Daikin Industries plans to establish a supply chain to make air conditioners without having to rely on Chinese-made parts within fiscal 2023.

Sony ranks second in global market share for cameras, following Canon. Its camera-related sales totaled 414.8 billion yen ($3.2 billion) in fiscal 2021, about 20% of its electronics business.

https://asia.nikkei.com/Business/Electronics/Sony-separates-production-of-cameras-for-China-and-non-China-markets


Seems like this could be a real trend for multinational companies in the world. Two production bases, one inside China for that market, and one outside China for other markets.