US electronics companies leaving China for PH

Everwin International Group, an American manufacturer of accessories for smart phones and laptops, has relocated some of its production to the Philippines as it closes its factories in China.

In addition, two other US electronics firms, with operations in China, are also keen at investing in the Philippines.

Senen Perlada, director of the Export Marketing Bureau of the Department of Trade and Industry, said Everwin has already registered with the Philippine Economic Zone Authority (PEZA) and started operations last month.

“The reason they gave us is China is becoming more expensive as manufacturing hub so the US-China trade war was incidental,” said Perlada.

Everwin is producing parts and accessories for all brands of mobile phones and laptops.

These accessories are exported globally.

Perlada said that Everwin roughly has six manufacturing plants in China but has decided to leave because of the increasing cost of doing business there.

Everwin has been planning to relocate in Asean countries, including the Philippines, to spread risks.

Everwin already started documentation processes since last year. It took over an existing an economic zone facility enabling them to start operation right away.

Perlada said that Everwin is also looking for additional areas in tne country.

Perlada has met with the Everwin officials during the DTI investment mission to Silicon Valley in January this year.

During the investment seminar, two more American electronics firms have expressed keen interest to locate in the Philippines.

Perlada said they have met with Google representatives. The group’s business model is to appoint vendors, which are responsible of their location. Once these tier 1 and tier 2 companies operate in a country, their suppliers are also expected to follow.