A US-based company known for its GPS navigation solutions and wearable devices is gearing up to invest in Southeast Asia in a bid to enhance the resilience of its supply chain.
The investment initiative, set to commence next month with production scheduled to begin in 2026, aims to diversify the company’s production base and bolster its supply chain resilience by forging closer ties with suppliers in the region.
While the exact location of the plant remains undisclosed until next month, the company’s marketing and business vice president for Asia emphasized the strategic importance of the move in fortifying the company’s supply chain. This decision aligns with the company’s commitment to ensuring short lead times for products and maintaining multiple suppliers for each component it procures.
Initially focusing on auto navigation products, the investment project is anticipated to drive the company’s growth over the next decade to three decades.
Although the company has historically maintained a significant portion of its production in Taiwan, where it employs around 10,000 people, the relocation initiative is not solely driven by the pursuit of lower manufacturing costs. Rather, it underscores the company’s proactive approach to enhancing its supply chain resilience and geographical diversification.
In addition to its production sites in Taiwan, the company has also established a research and development center in New Taipei City, underscoring its commitment to investing in the region.
While the company operates production bases in the US and Europe, the forthcoming investment in Southeast Asia reflects its strategic vision to further strengthen its global presence and adaptability in the face of evolving market dynamics.
Despite challenges such as foreign exchange losses in Japan and a slow economic recovery in China, the company remains optimistic about its sales outlook. With expectations of a 10 percent growth in sales on average this year, the company anticipates robust revenue growth in Asia, with markets like Taiwan, Indonesia, Vietnam, Singapore, and Malaysia poised for steady expansion.
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