Elpida Memory, Inc. announced Thursday it would transfer up to 40 percent of the production capacity at its Hiroshima plant to its subsidiary in Taiwan, in response to the extremely strong yen and rapid deterioration of the market.
Elpida, the world's third-largest manufacturer of dynamic random access memory (DRAM) chips, said it was considering incrementally transferring the production capacity at its plant in Higashi-Hiroshima, Hiroshima Prefecture, to its cost-competitive subsidiary Rexchip Electronics Corp. in Taiwan.
The Hiroshima plant will focus on products for smartphones.
Elpida said it would maintain employment by transferring affected workers within the Elpida group.
Moves to transfer production and other operation bases overseas are accelerating among manufacturers, whose business environment is deteriorating due to the high appreciation of the yen.
Panasonic Corp. plans to transfer part of its parts procurement and distribution functions to Singapore in the first half of fiscal 2012, sources said Thursday.
The sources said Panasonic will transfer about 20 of the 120 employees of its procurement and distribution headquarters in Osaka to Singapore. A base in Singapore will serve as a center for parts procurement abroad.
Panasonic also will reduce the number of companies from which it procures parts to about 10,000, down 40 percent from the current level of about 18,000, in fiscal 2012. The company aims to cut annual costs by about 60 billion yen through a central purchasing system, the sources said.
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