Power supply and electronic components supplier Delta Electronics has already diversified its production sites from China to Southeast Asia and Europe, enabling it to mitigate the impacts of China's current COVID curbs, according to the Taiwan-based company.
Delta CEO Ping Cheng, at a recent event, pointed out that production at the company's plant in Wujiang, China was impacted by the lockdowns in Shanghai and Kunshan. However, only 20% of Delta's overall capacity will be impacted in April since the company has been relocating portions of its capacity to places such as India, Thailand, and Europe.
With factories in Kunshan beginning to resume operation, Delta's shipments are expected to improve in May. The company will also launch measures to fill up the shipment gap created during the lockdowns.
Since around 80% of the workers in Delta's Wujiang plant live in the plants' dormitory, the company will be able to resume its production fast if component supply returns normal.
Delta is also planning for capacity expansions with new plants in China's Chongqing and Eastern Europe set to begin production in 2023 or 2024, Cheng said. Delta's plant in Chongqing will focus on making notebook power supply as the city is one of the key notebook manufacturing hubs. Delta is also planning to make electric vehicle (EV) products at the plant as they can be delivered to clients in Europe via Trans-Asian Railway, noted Cheng.
Delta is planning to gradually reduce the share of capacity in China from 75-80% to only 60%, but its capacity in China will continue to rise as end demand has continued to rise.
