News

Top  European  chipmaker  Infineon  has  kicked  off  production  at  its  largest-ever  power  chip  plant  in  Malaysia, marking a win for the Southeast Asian nation as it attempt to move up the global semiconductor supply chain. The plant in Kulim will be the world's biggest factory for silicon carbide (SiC) once it reaches full capacity over next five years, the company said. Infineon is eyeing demand from the renewable energy sector and electrified applications such as electric vehicles and AI data centers. Malaysia is already home to Infineon's biggest chip production site in Asia as well as its largest chip packaging and assembly operations in the world.   Source : https://asia.nikkei.com/Business/Tech/Semiconductors/Infineon-opens-largest-power-semiconductor-plant-in-Malaysia

HP is looking to shift more than half of its personal computer production away from China and is setting up a "backup" design hub in Singapore in an attempt to reduce geopolitical risks around China and Taiwan, Nikkei Asia has learned. The plans represent the most aggressive move yet by America's leading PC maker to diversify its supply chains away from Asia's biggest economy. The company, which currently makes the bulk of its PCs in China, is in talks with suppliers about the move and aims to achieve its target in two to three years,. HP shipped some 52 million PCs in 2023, second only to Lenovo. Its accelerating supply chain shift marks a change from its decades long stance as a strong supporter of China-based manufacturing.   Source : https://asia.nikkei.com/Spotlight/Supply-Chain/HP-plans-its-most-aggressive-shift-of-production-away-from-China

The Indonesian government has extended safeguard tariffs on imports of textiles, carpets, and other fabric coverings for another three years in a bid to protect and enhance the competitiveness of the domestic textile industry. The decision aims to counteract challenges faced by the textile and textile product (TPT) sector, which has struggled to return to pre-pandemic levels due to declining domestic and export demand and increasing competition.   Source : https://jakartaglobe.id/business/indonesia-extends-safeguard-tariffs-to-protect-struggling-textile-industry

Indonesia maintained its positive trade balance for the 51st consecutive month in July since May 2020, although the surplus recorded last month has narrowed, according to the Central Statistics Agency (BPS). Indonesia enjoyed the biggest surplus with the US, amounting to $1.27 billion in July’s non-oil and gas trade, followed by India ($1.23 billion) and the Philippines ($742.9 million). Indonesia’s monthly exports in July hit $22.21 billion, up by 6.55 percent month-to-month. July export numbers also went up 6.46 percent year-on-year. BPS attributed the higher monthly exports to the mining sector, while the processing industry had mainly spurred the yearly increase. Imports jumped 17.82 percent month-to-month to $21.74 billion in July.  Indonesia also imported 11.07 percent more on a YoY basis.   Source : https://jakartaglobe.id/business/indonesia-books-trade-surplus-for-51-consecutive-months

Dear Valued Customers,   We'd like to inform you about a significant development that may affect your shipments in the upcoming weeks. The Canada Industrial Relations Board (CIRB) has ruled that none of the rail services are essential by law, which means a rail strike could occur as early as August 22nd, 2024, at 00:01 EST. The union is required to give a 72-hour notice before initiating a strike.   What to Expect:   - Effective August 15th:  All temperature-controlled intermodal traffic will be embargoed across Canadian National Railway Company (CN) network. Additionally, traffic for hazardous materials will be embargoed. - Effective August 16th: CN will embargo all intermodal traffic destined for Canada from U.S. origins or U.S. interchange points.   How This Affects Your Shipments:   - From Europe: We can explore rerouting your cargo to Montreal and then trucking it to Inland (Toronto) as an alternative. -  From  Asia:  Although  this  may  be  more  costly,  we  recommend  trans-loading  containers  and  trucking palletized cargoes directly inland (Calgary, Edmonton, Manitoba, and Toronto).   Our team understands this situation's potential challenges to your business. We will support you in finding alternative solutions and minimizing any impact. Please don’t hesitate to reach out if you have questions or need assistance during this period.   Thank you for your continued trust and partnership!

Bangladesh's garment industry, which contributes about 83% of Bangladesh's total export earnings remain closed, hitting apparel chains H&M and Zara the worst. Bangladesh's garments manufacturers body has called for a complete shutdown of all facilities causing a major disruption to the nation's key industry, according to a BBC report. This comes a day after Prime Minister Sheikh Hasina stepped down and fled the country. This shutdown of garment factories will hit global apparel giants like H&M and Zara as Bangladesh is a prime hub for producing clothing. H&M sources garments from more than 1,000 Bangladesh factories, while Zara's key manufacturing clusters are based in Bangladesh.   Source : https://www.hindustantimes.com/business/bangladeshs-garment-factories-closed-h-m-and-zara-hit-most-report-101722933644258.html

According to Descartes Systems Group's latest Global Shipping Report, July container volumes into the United States were the third highest on record, eclipsed only by the first- and second-highest volumes in May 2022 and March 2022, respectively. "The August update of the logistics metrics monitored by Descartes reinforces the strength of US container imports since the start of 2024; however, ongoing conflict in the Middle East, stalled labor negotiations at US South Atlantic and Gulf Coast ports, and reduced port capacity as container volumes slowly return to the Port of Baltimore point to potential global supply chain volatility," commented a Descartes analyst. US imports from China reached a record high 1,022,913 TEUs in July (up 14.7% over June and 25% over July 2023), which contributed to the significant growth in the month.”   Source : https://container-news.com/us-volumes-break-2-5-million-teu-mark-in-july-imports-from-china-set-record-high

GAC Aion, a Chinese electric vehicle manufacturer, has announced its plan to open a new manufacturing facility in Cikampek, West Java, by the first quarter of 2025, aimed at expanding the company’s presence in the Southeast Asian electric vehicle market. This announcement follows the initial shipment of 500 electric vehicles to Indonesia, signaling the company’s commitment to the region. In addition to its upcoming Indonesian plant, GAC Aion has already begun operations at a manufacturing facility in Rayong, Thailand. This plant is projected to produce up to 50,000 units annually, supporting Thailand’s ambition to become a major hub for electric vehicle manufacturing in Southeast Asia.   Source : https://indonesiabusinesspost.com/risks-opportunities/gac-aion-to-launch-electric-vehicle-manufacturing-plant-in-indonesia