One of the leading Taiwanese LCD panel makers, Innolux Corp. has decided to move the production of its panels from China to Taiwan due to the risk of Trump’s tariffs which will be imposed on the Chinese-made goods. Now, Innolux says that it is moving production in order to shield its US customers from US’s tariffs on Chinese goods.
This was announced by Innolux earlier this week at a press conference where the company based in Miaoli announced that it “was shifting some of its China production to a new plant in Tainan to avoid raising costs for consumers in the U.S. due to the tariffs the Trump administration has imposed on goods from China”. Innolux also announced that despite the adversity seen in panel industry in this year, they will stay in line with last year in terms of revenue.
For the first stage, Innolux has set a production target of 200,00 units whereas once the production goes into full swing, this target will be increased to 600,000 units per month. Also, Yang mentions that moving its production from China to Taiwan will also help the company deliver its panels faster to US.
Yang also mentioned that “one-stop manufacturing and production in Taiwan, coupled with shipping from Taiwan to the U.S., will save eight days of logistics and warehousing costs compared with shipments from Southeast Asia, effectively increasing profits and unit prices”
That being said, Innolux says that its China plant will also be operational. It will continue to operate and serve the China market which is based in Foshan, Guangdong Province. It is reported that Innoluz shipped 1.8 million TV sets last year whereas it will sell 6 million sets this year. Currently, Innolux is the 15th best-selling TV maker in the market and it hopes to enter the Top 10 list very soon.