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Innolux Shifts Mainland China Production Lines Back to Taiwan

By Korbin Lan
Published: Jul 03,2014

TAIPEI, Taiwan- Innolux Chairman Duan Xing-jian on Tuesday stated that Innolux is actively promoting the “re-industrialization” of Taiwan’s panel production industry and shifting 25% to 30% of production lines from Mainland China back to Taiwan. Innolux is also introducing automated production in order to both shorten manufacturing time and increase quality.

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According to Duan Xing-jian, in recent years, European and American electronics manufacturers have been withdrawing from Mainland China one after another and moving their factories back to the location of their parent companies. Furthermore, through new methods, such as the automation of production lines, companies have increased quality and shortened manufacturing times. This process is known as “re-industrialization,” and besides bringing about higher rates of employment, it has also increased the companies’ competitiveness.

He stated that Innolux is also actively promoting the “re-industrialization” of Taiwan’s panel production industry. Innolux is bringing between 25% and 30% of the production lines located in Mainland China back to Taiwan, and this is creating new employment opportunities. In addition to re-industrialization, strengthening the automation of production lines, upgrading manufacturing technology, and cultivating the talent needed for industrial upgrading are three other important goals that Innolux will strive for in the future.

Duan Xing-jian emphasizes that automation is the key to development in the panel industry, and promoting the automation of production lines will encourage advancements in the industrial structure. Furthermore, because the production lines will be unmanned, production costs will be lower. For example, if there is no need to turn on electrical lights, electrical fees will decrease. Currently, Innolux has sixy-thousand employees in Mainland China. Although it is impossible to relocate all of the production lines back to Taiwan, it is possible to bring back some of them.

Recently, a number of prominent companies in Taiwan’s electronics industry have announced to expand their investment in Taiwan, including Hon Hai, ASE Kaohsiung, and Largon. Innolux’s move will make this trend even more apparent.

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