Toshiba To Build New Chip Plant In Thailand

[webfact]

Toshiba to build new chip plant in Thailand

TOKYO, April 24, 2012 (AFP) - Toshiba said Tuesday it would build a new chip factory in Thailand to replace one hit by record flooding last year that hammered Japanese manufacturers operating in the Southeast Asian nation.

The plant, scheduled to start production by mid-2013, will be built in Prachinburi province, about 140 kilometers (90 miles) northeast of the capital Bangkok on a site with no major rivers nearby, Toshiba said.

The current plant, which is just north of Bangkok, suspended operations in October after being hit by the floods.

"The investment will be in the order of several billion yen (tens of millions of dollars)," a Toshiba spokesman said.

Most of the construction costs would be covered by flood insurance payouts, the company said.

The new factory will make chips that control the current and voltage in digital consumer products including smartphones and tablet computers.

The months-long floods last year took a heavy toll on Thailand's industrial heartland north of Bangkok, with many factories forced to close temporarily, including those of major firms such as Sony, Canon, and automaker Honda.

-- (c) Copyright AFP 2012-04-24

[Kalbo]

If anyone has been to Bangkadi Industrial Estate, then it's very clear that Toshiba more or less 'owned' the place.It's interesting to note that Toshiba are only building 1 new factory to replace ONE that was flooded.

The question to ask is what Toshiba are going to do about the other 8 factories that were more or less destroyed, and where they are going to be re-located. Attached is a picture of one of said factories as I went past it in a boat last year.

[tlansford]

Good for Tosh.

"no major rivers nearby"

Clearly not into fishing...

Good idea....

[TallGuyJohninBKK]

I'm sure if there's any possible way to flood Prachinburi, the government will find some way to accomplish it. Stay tuned.

Perhaps the more telling question we likely won't see reported in the news is... how many Thais was Toshiba employing at its Thailand factories before... and how many are they going to be employing when the dust/mud settles.

That of course would tell the true story... one we're unlikely to hear.

Edited April 24, 2012 by TallGuyJohninBKK

[geriatrickid]

If anyone has been to Bangkadi Industrial Estate, then it's very clear that Toshiba more or less 'owned' the place.It's interesting to note that Toshiba are only building 1 new factory to replace ONE that was flooded.

The question to ask is what Toshiba are going to do about the other 8 factories that were more or less destroyed, and where they are going to be re-located. Attached is a picture of one of said factories as I went past it in a boat last year.

The appropriate question to ask is what was the profitability and use of the other 8 factories prior to the flood.

If those factories were not profitable and running below capacity or not fully used or otherwise outdated, a prudent business is going tp take the flood damage as an opportunity to take the insurance money and do something else with it.

Most large insurance placements allow an insured to rebuild on a different site of their choosing or to opt for an actual cash value settlement on property. It might just make economic sense, not to rebuild. Markets regularly change. Remember when PCs all came with clunky screens? Now they are all LED/LCD. What do you think happened to the clunky manufacturers? They eiher closed or retooled.

BTW, many manufacturers in Japan have yet to start or finish rebuilding plants damaged in the Japanese quake.

[h90]

Good for Tosh.

"no major rivers nearby"

Clearly not into fishing...

Good idea....

The fish will come.....with or without river.....on the street in the factory....

[h90]

If anyone has been to Bangkadi Industrial Estate, then it's very clear that Toshiba more or less 'owned' the place.It's interesting to note that Toshiba are only building 1 new factory to replace ONE that was flooded.

The question to ask is what Toshiba are going to do about the other 8 factories that were more or less destroyed, and where they are going to be re-located. Attached is a picture of one of said factories as I went past it in a boat last year.

The appropriate question to ask is what was the profitability and use of the other 8 factories prior to the flood.

If those factories were not profitable and running below capacity or not fully used or otherwise outdated, a prudent business is going tp take the flood damage as an opportunity to take the insurance money and do something else with it.

Most large insurance placements allow an insured to rebuild on a different site of their choosing or to opt for an actual cash value settlement on property. It might just make economic sense, not to rebuild. Markets regularly change. Remember when PCs all came with clunky screens? Now they are all LED/LCD. What do you think happened to the clunky manufacturers? They eiher closed or retooled.

BTW, many manufacturers in Japan have yet to start or finish rebuilding plants damaged in the Japanese quake.

something else maybe

somewhere else for sure

[Nisa]

What are these crazy folks at Toshiba up to with this radical idea of not building a factory in a flood plain? They must not have read all the expert advice from posters here on TV that Japanese companies should (will) be making a mass exodus of out of Thailand because of the earthquakes, Tsunami, nuclear melt down, flooding.

Sadly Toshiba was forced to close 3 chip plants in Japan this year due to economic reasons.

Edited April 24, 2012 by Nisa

[Pib]

I'm sure if there's any possible way to flood Prachinburi, the government will find some way to accomplish it. Stay tuned.

Easy...the govt will just identify Prachinburi as part of the 2M rai flood catchment area.

[Payboy]

Toshiba To Build New Chip Plant In Thailand

Now we know what the "ba" in Toshiba stands for.

[Nisa]

If anyone has been to Bangkadi Industrial Estate, then it's very clear that Toshiba more or less 'owned' the place.It's interesting to note that Toshiba are only building 1 new factory to replace ONE that was flooded.

The question to ask is what Toshiba are going to do about the other 8 factories that were more or less destroyed, and where they are going to be re-located. Attached is a picture of one of said factories as I went past it in a boat last year.

The appropriate question to ask is what was the profitability and use of the other 8 factories prior to the flood.

If those factories were not profitable and running below capacity or not fully used or otherwise outdated, a prudent business is going tp take the flood damage as an opportunity to take the insurance money and do something else with it.

Most large insurance placements allow an insured to rebuild on a different site of their choosing or to opt for an actual cash value settlement on property. It might just make economic sense, not to rebuild. Markets regularly change. Remember when PCs all came with clunky screens? Now they are all LED/LCD. What do you think happened to the clunky manufacturers? They eiher closed or retooled.

BTW, many manufacturers in Japan have yet to start or finish rebuilding plants damaged in the Japanese quake.

I think you hit it on the head. Toshiba is going through some changes (problems) right now, especially with the global slow down on PC sales, and they may use this opportunity to consolidate, as they have done in Japan with their chip plants, or focus on other areas. I wonder what the size of this plant will be compared to the previous one and if they are even making the same types of chips.

[rubl]

If anyone has been to Bangkadi Industrial Estate, then it's very clear that Toshiba more or less 'owned' the place.It's interesting to note that Toshiba are only building 1 new factory to replace ONE that was flooded.

The question to ask is what Toshiba are going to do about the other 8 factories that were more or less destroyed, and where they are going to be re-located. Attached is a picture of one of said factories as I went past it in a boat last year.

The appropriate question to ask is what was the profitability and use of the other 8 factories prior to the flood.

If those factories were not profitable and running below capacity or not fully used or otherwise outdated, a prudent business is going tp take the flood damage as an opportunity to take the insurance money and do something else with it.

Most large insurance placements allow an insured to rebuild on a different site of their choosing or to opt for an actual cash value settlement on property. It might just make economic sense, not to rebuild. Markets regularly change. Remember when PCs all came with clunky screens? Now they are all LED/LCD. What do you think happened to the clunky manufacturers? They eiher closed or retooled.

BTW, many manufacturers in Japan have yet to start or finish rebuilding plants damaged in the Japanese quake.

I think you hit it on the head. Toshiba is going through some changes (problems) right now, especially with the global slow down on PC sales, and they may use this opportunity to consolidate, as they have done in Japan with their chip plants, or focus on other areas. I wonder what the size of this plant will be compared to the previous one and if they are even making the same types of chips.

Chip factories tend to be refurbished or even replaced every three/four years to reflect improved technology, smaller diecasts, etc., etc. Indeed the move by Toshiba could have been in the (internal) planning anyway, but now can be financed more corporate friendly. For the government surely an opportunity to say again "Japanese have faith", for the 'unknow number of' workers who may or may not be able to apply for a job in the new factory the situation may be less hopefull.

As usual, insufficient data to really form a well-founded opinion here, sorry

Edited April 24, 2012 by rubl

[Nisa]

If anyone has been to Bangkadi Industrial Estate, then it's very clear that Toshiba more or less 'owned' the place.It's interesting to note that Toshiba are only building 1 new factory to replace ONE that was flooded.

The question to ask is what Toshiba are going to do about the other 8 factories that were more or less destroyed, and where they are going to be re-located. Attached is a picture of one of said factories as I went past it in a boat last year.

The appropriate question to ask is what was the profitability and use of the other 8 factories prior to the flood.

If those factories were not profitable and running below capacity or not fully used or otherwise outdated, a prudent business is going tp take the flood damage as an opportunity to take the insurance money and do something else with it.

Most large insurance placements allow an insured to rebuild on a different site of their choosing or to opt for an actual cash value settlement on property. It might just make economic sense, not to rebuild. Markets regularly change. Remember when PCs all came with clunky screens? Now they are all LED/LCD. What do you think happened to the clunky manufacturers? They eiher closed or retooled.

BTW, many manufacturers in Japan have yet to start or finish rebuilding plants damaged in the Japanese quake.

I think you hit it on the head. Toshiba is going through some changes (problems) right now, especially with the global slow down on PC sales, and they may use this opportunity to consolidate, as they have done in Japan with their chip plants, or focus on other areas. I wonder what the size of this plant will be compared to the previous one and if they are even making the same types of chips.

Chip factories tend to be refurbished or even replaced every three/four years to reflect improved technology, smaller diecasts, etc., etc. Indeed the move by Toshiba could have been in the (internal) planning anyway, but now can be financed more corporate friendly. For the government surely an opportunity to say again "Japanese have faith", for the 'unknow number of' workers who may or may not be able to apply for a job in the new factory the situation may be less hopefull.

As usual, insufficient data to really form a well-founded opinion here, sorry

One thing I also know is concerning some companies is the increase (real or imagined) of the minimum wage. Doesn't seem like a heck of a lot but when you are talking about having to raise salaries by 50% it adds up ... especially when there are still plenty of countries in the area with cheap labor. I have no clue as to workers wages in these factories (but would be curious if somebody does know) but regardless if they are minimum wage or not doesn't make a difference because if the lowest people get bumped up 50% then the senior folks will also need a raise otherwise the newest and lowest workers (and the local 7-11) will be paid the same as a person there who has been there for years and worked their way up to a 50% increase in salary.

FYI - I have nothing against the raise in wages, but just think they are trying to increase it too quickly. In fact, we already see the results in the price of some goods in Thailand because of this. Anything more than a 10% year increase is asking for trouble in my opinion.

[Unkomoncents]

What are these crazy folks at Toshiba up to with this radical idea of not building a factory in a flood plain? They must not have read all the expert advice from posters here on TV that Japanese companies should (will) be making a mass exodus of out of Thailand because of the earthquakes, Tsunami, nuclear melt down, flooding.

Sadly Toshiba was forced to close 3 chip plants in Japan this year due to economic reasons.

Great: another dying Japanese company has invested its stakes in one of the world's most volatile markets. They should ignore what everyone says, and keep doing exactly what they're doing, because that strategy has been the foundation of business since the industrial revolution. Everyone is crazy, as everything will surely be fine in Thailand. I mean, heck, it wasn't that bad when you couldn't buy water at the grocery store. Thailand will be fine. Just read the "Bangkok Post"; it's Thailand's highest-quality daily and it will inform you if your day's fortune might lead to an unfortunate car accident. Just watch the lines on your hand, as they decide your future. Your eyes and brains have little to do with it.

[Nisa]

Great: another dying Japanese company has invested its stakes in one of the world's most volatile markets.

Thailand is one of the fasted growing economies in Asia as well as being in the top 25 largest economies in the world and 2nd largest in SE Asia with a yearly unemployment rate below 3% for the last decade. Not too shabby for a newly industrialized nation during a global economic melt down as its currency has remained relatively stable.

One thing investors have been able to depend on in Thailand, compared to most other places, is consistency (not volatility) be it a 50-year flood, Tsunami or Military / Political Turmoil.

Edit: I also don't think anybody would consider Toshiba (Fortune 100) a dying company with $1.6 billion in profits last year and having 65 Billion in assets.

Edited April 24, 2012 by Nisa

[Rooo]

Please read forum rules:

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Post & replies quoting it removed. Any further posting of this type will result in a ban.

[OzMick]

Were they encouraged to bid in the tablet supply fiasco? Surely a quality manufacturer producing IN THAILAND should be given a huge preference over some dodgy Chinese mob.

Even if their tablets cost twice as much, most of that would stay here causing economic stimulus.

[phiphidon]

Were they encouraged to bid in the tablet supply fiasco? Surely a quality manufacturer producing IN THAILAND should be given a huge preference over some dodgy Chinese mob.

Even if their tablets cost twice as much, most of that would stay here causing economic stimulus.

I think you'll find that Toshiba (I presume that is the firm you are referring to) have their pad's etc assembled by some "dodgy" chinese or taiwanese "mob" in their respective countries. As far as I am aware they only produce components here.

[Sibbo]

Toshiba to build new CHIP plant...

Birds Eye to build new FISH plant....

[OzMick]

Were they encouraged to bid in the tablet supply fiasco? Surely a quality manufacturer producing IN THAILAND should be given a huge preference over some dodgy Chinese mob.

Even if their tablets cost twice as much, most of that would stay here causing economic stimulus.

I think you'll find that Toshiba (I presume that is the firm you are referring to) have their pad's etc assembled by some "dodgy" chinese or taiwanese "mob" in their respective countries. As far as I am aware they only produce components here.

In a thread about Toshiba, would I be referring to Samsung?

If PTP keeps there promise there is an ongoing annual demand of around 1 million tablets. I'm sure that ANY company could see the economic rationale of assembling here rather than shipping offshore for assembly and re-importing (with finished product import duty).

My point is that even if the tablets were no better, most of the price paid stays in Thailand and is not an irrecoverable foreign currency loss.

Edited April 25, 2012 by OzMick

[philw]

The usual attempts to "rubbish" any good news from the usual folks............

Getting to be the sad par for the course on TV.

[phiphidon]

Were they encouraged to bid in the tablet supply fiasco? Surely a quality manufacturer producing IN THAILAND should be given a huge preference over some dodgy Chinese mob.

Even if their tablets cost twice as much, most of that would stay here causing economic stimulus.

I think you'll find that Toshiba (I presume that is the firm you are referring to) have their pad's etc assembled by some "dodgy" chinese or taiwanese "mob" in their respective countries. As far as I am aware they only produce components here.

In a thread about Toshiba, would I be referring to Samsung?

If PTP keeps there promise there is an ongoing annual demand of around 1 million tablets. I'm sure that ANY company could see the economic rationale of assembling here rather than shipping offshore for assembly and re-importing (with finished product import duty).

My point is that even if the tablets were no better, most of the price paid stays in Thailand and is not an irrecoverable foreign currency loss.

Too early to be touchy Oz.

Is there the skill set in Thailand to assemble PAD's in the first place, that's my point. Are any PAD's assembled in Thailand? If not, as I suspect, you are talking a long , long delay to set that up and then what? (yes, don't bother telling me how long it's taken so far)

Yesterday there was a discussion along the lines of your proposal in the online Guardian with regard to proposing the assembly of IPhones in America. Interesting viewpoints put forward but basically corporate greed won out.

Edited April 25, 2012 by phiphidon

[OzMick]

Were they encouraged to bid in the tablet supply fiasco? Surely a quality manufacturer producing IN THAILAND should be given a huge preference over some dodgy Chinese mob.

Even if their tablets cost twice as much, most of that would stay here causing economic stimulus.

I think you'll find that Toshiba (I presume that is the firm you are referring to) have their pad's etc assembled by some "dodgy" chinese or taiwanese "mob" in their respective countries. As far as I am aware they only produce components here.

In a thread about Toshiba, would I be referring to Samsung?

If PTP keeps there promise there is an ongoing annual demand of around 1 million tablets. I'm sure that ANY company could see the economic rationale of assembling here rather than shipping offshore for assembly and re-importing (with finished product import duty).

My point is that even if the tablets were no better, most of the price paid stays in Thailand and is not an irrecoverable foreign currency loss.

Too early to be touchy Oz.

Is there the skill set in Thailand to assemble PAD's in the first place, that's my point. Are any PAD's assembled in Thailand? If not, as I suspect, you are talking a long , long delay to set that up and then what? (yes, don't bother telling me how long it's taken so far)

Yesterday there was a discussion along the lines of your proposal in the online Guardian with regard to proposing the assembly of IPhones in America. Interesting viewpoints put forward but basically corporate greed won out.

The current preferred tenderer has the capacity to produce around 1/3 the annual demand, so will have to build new plant - the question is where.

What is better for Thailand? To buy 1 million tablets from China every year, or to start a new hi-tech industry to produce them locally? Perhaps what is best for Thailand isn't the major objective.

And if urgency is a major factor, why is Scope being considered at all if they can't meet the requirements of the tender?

[geriatrickid]

Were they encouraged to bid in the tablet supply fiasco? Surely a quality manufacturer producing IN THAILAND should be given a huge preference over some dodgy Chinese mob.

Even if their tablets cost twice as much, most of that would stay here causing economic stimulus.

Toshiba is not a major player in this product line.

[TallGuyJohninBKK]

I think it's an interesting notion...

Toshiba WANTS to be a bigger player in the tablets market... Whether it's an educationally sound proposal or not, Thailand says it WANTS to buy tablets and WANTS more local high-tech jobs...

Why couldn't the govt be talking to Toshiba about some package deal to establish or relocate a tablets factory here with some kind of contractual agreement for the Thai govt to buy a certain number each year for some period of years?

Of course, that would assume the govt is really serious about pursuing and implementing its tablets in schools proposal -- which many of us consider to be a dubious notion.

Maybe they can also get Toshiba or one of the other Japanese conglomerates to assist with the ELECTRICITY in schools plan. Ahh... I forgot... there is no such plan.

Edited April 25, 2012 by TallGuyJohninBKK

[OzMick]

Were they encouraged to bid in the tablet supply fiasco? Surely a quality manufacturer producing IN THAILAND should be given a huge preference over some dodgy Chinese mob.

Even if their tablets cost twice as much, most of that would stay here causing economic stimulus.

Toshiba is not a major player in this product line.

It doesn't have to be Toshiba - any company could be tempted with a guaranteed purchase of a million plus units per year, and that's only for P1 kids. At some higher grade, the old tablets will have to replaced/upgraded.

That is of course, if PTP is serious and not just running an election stunt.

BTW do you consider scope a "major player"? they don't have the capability to satisfy this tender.

[hyperdimension]

Why couldn't the govt be talking to Toshiba about some package deal to establish or relocate a tablets factory here with some kind of contractual agreement for the Thai govt to buy a certain number each year for some period of years?

The Thai president of Toshiba Thailand is anti-Pheu Thai. Here is what she said around a month ago:

President of Toshiba Thailand and Thai Chamber of Commerce Deputy Secretary-General, Kobkarn Wattanawarangkul, disclosed that her company has refused to take part in providing IT support and parts for the free tablet distribution project, which is expected to be riddled with corruption, despite the fact that it needs large orders due to the disruption in sales and manufacturing from last year's floods.

Source: Anti-Corruption Network Launchs First "Watch Dog" Volunteers Project Edited April 25, 2012 by hyperdimension

[tlansford]

setting up a tablet assembly plant in Thailand could be a good second career for some ex-pat retirees?

[Chang_paarp]

setting up a tablet assembly plant in Thailand could be a good second career for some ex-pat retirees?

Some have tried and become headlines in the high quality Pattaya media, with resulting thread in this forum. I am sure there are others we do not hear about.

[h90]

I think it's an interesting notion...

Toshiba WANTS to be a bigger player in the tablets market... Whether it's an educationally sound proposal or not, Thailand says it WANTS to buy tablets and WANTS more local high-tech jobs...

Why couldn't the govt be talking to Toshiba about some package deal to establish or relocate a tablets factory here with some kind of contractual agreement for the Thai govt to buy a certain number each year for some period of years?

Of course, that would assume the govt is really serious about pursuing and implementing its tablets in schools proposal -- which many of us consider to be a dubious notion.

Maybe they can also get Toshiba or one of the other Japanese conglomerates to assist with the ELECTRICITY in schools plan. Ahh... I forgot... there is no such plan.

Maybe a problem with the under the table fee? Maybe Toshiba doesn't want to pay?