In a surprising new twist to the off-shoring / outsourcing saga, the impossible has happened with Japan offshore outsourcing to USA companies. In the news recently, California’s Advanced Inter-connect Technologies (AIT) and Japan’s Nakaya Micro-devices Corp, semi-conduction assembly and test house companies announced a joint venture for providing sub-contract assembly and test services that will target the Japanese semi-conductor market and help leverage AIT facilities in Hong Kong and Indonesia. It is the first of moves intended to capitalise on the growing interest in off-shoring / outsourcing by leading Japanese system and semi-conductor manufacturers.
Headquartered in Singapore, AIT VP and general manager of the joint venture confirms: “The software development outsourcing trend has been increasing in Japan.” In the manner of European and North American device and system manufactures before them, the Japanese are seeking to off-shore / outsource production and assembly to lower cost locales. From in-house, to affiliated companies, the Japanese are now hiring independent contractors and showing an increasing willingness to look outside Japan, as they accept the fact quality products can be manufactured outside of their organisations and Japan.
Always ready to take advantage of an opportunistic trend, many American companies such as Amkor Technology have been making considerable inroads with new customers in Japan. And, as Japanese companies begin to off-shore / outsource packaging and testing in a big way, two out of three of Amkor’s packaging and testing customers are from Japan.
AIT Nakaya Singapore PTE Ltd., the new joint venture is gearing to channel Japanese IDMs assembly and test demands to low-cost, high-volume facilities in Indonesia and Hong Kong. Ultimately, that might prove to be the new turning point in the off-shoring / outsourcing trend as America off-shores / outsource to India, China, Canada, Philippines et al while receiving off-shored / outsourced work from other developed nations.
Everyone involved is happy as benefits of off-shoring / outsourcing accrue and there are rich profits for all concerned.
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The article is sponsored by A-1 Technology Inc, dealing in offshore outsourcing and offshore software development.
