KAGA ELECTRONICS CO., LTD. announced construction of a third manufacturing plant in Thailand through its local subsidiary, marking another step in the electronics industry’s shift away from China-based production. The Japanese company plans to invest approximately ¥1.3 billion ($8.4 million) in the new facility at Amatanakorn Industrial Estate.
The 4,400-square-meter plant will focus on circuit board assembly for air-conditioning and automotive equipment, while adding production lines specifically designed for products destined for the US market. Operations are scheduled to begin by year-end with 110 employees.
KAGA ELECTRONICS established its Thai operations in 2002 and currently runs two factories in the same industrial estate. The company stated the third facility will function as a “mother factory” to deploy automated equipment at sites in Malaysia, Vietnam, and India, though questions remain about execution timelines for such ambitious regional coordination.
The company projects ¥50 billion ($325 million) in combined sales from all three Thai facilities within five years—a target that depends heavily on securing sufficient customer commitments in an increasingly competitive Southeast Asian manufacturing landscape.
The expansion reflects broader industry trends, as electronics manufacturers relocate production from China to ASEAN countries amid ongoing trade tensions and rising labor costs.
