On October 8, PCB manufacturer Jingguo announced that its board of directors has approved plans to adjust operations at its Taiwan facility, including employee layoffs. The company will cease production in Taiwan and transfer orders to its subsidiary, Jinglu Electronics (Kunshan) Co., Ltd. in mainland China.
Jingguo noted that since the end of the pandemic, the Taiwan facility has faced continuous losses for three years due to a downturn in the consumer electronics industry and rising raw material costs. Considering the future market situation and the need to protect shareholder interests, the company plans to stop operations in Taiwan effective December 25, 2024.
Some employees in Taiwan will remain based on operational needs, while others will have their contracts terminated in accordance with labor laws and regulations. A mass layoff notification is expected on October 9, 2024, with the layoffs becoming effective in late December 2024. These adjustments are made to improve group operational performance, reduce losses, and enhance shareholder equity.
Following the closure of its Taiwan and Thailand facilities, Jingguo will only retain the Kunshan plant in mainland China, which primarily produces storage boards, battery boards, and network communication boards.
According to the company’s August financial report, the Taiwan plant employs 400 people, while the Kunshan plant has 1,738 employees, and the Thailand plant has 1,075 employees. In the first half of the year, the top five end applications were storage (21.3%), laptops (20.5%), network communication (12.1%), home appliances (10.5%), and automotive boards (9.5%).
Established in 1981 and located in New Taipei City, Taiwan, Jingguo primarily produces double-sided and multi-layer printed circuit boards, initially focusing on consumer electronics PCBs. To meet ongoing market growth and customer demand, the company expanded its facilities in 1986 and officially moved to its current location in Shulin District, New Taipei City, in 1988. Since then, it has diversified its product line to various applications, including electronic products, computer accessories, and communication products.
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Source: Economic Daily
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