China's production costs increase again, and electronic components set off a new wave of capacity adjustments | Anue Juheng-Juheng New Vision

The Chinese government has promoted electricity curtailment policies and increased electricity prices. This has affected some electronic component companies that consume more electricity. Coupled with factors such as shortage of labor and rising wages, the gap in production costs between China and Southeast Asia has gradually widened, which has also caused the industry to once again. Consider the issue of capacity allocation. From the US-China trade war that began at the end of 2018 to the outbreak of the epidemic in China in the first half of last year, Taiwanese factories started a wave of production capacity transfers. Whether in…