Daikin is capable of constructing a supply chain independent of Chinese components.

Daikin is capable of constructing a supply chain independent of Chinese components.

Daikin Industries plans to construct a supply chain in fiscal 2023 that will allow it to continue manufacturing air conditioners in the event that critical components manufactured in China become unavailable. Suppliers will need to produce in countries other than China, as well as Japan, for parts related to essential functions like energy efficiency. It is becoming increasingly common for Japanese manufacturers to reduce their reliance on China as a result of supply disruption risks and geopolitical tensions brought on by China’s shutdown of its epidemic prevention measures and the confrontation between China and the United States.

In the past, Japanese businesses have largely moved their production and component sourcing to China due to the country’s lower labor and material costs. Japan will export goods worth 17 trillion yen to China in 2020, according to data from the country’s Ministry of Finance. Japan is reliant on China for many different things, but especially for electronics and automobile components. Since the middle of the 2000s, Daikin has placed a special emphasis on sourcing components from China. In 2020, 35% of Daikin’s total purchase value came from China.

Due to the impact of Shanghai’s closure, Daikin has reduced production of some products, even though it plans to reduce its reliance on Chinese suppliers to 20% by 2021. Daikin thinks it’s important to have a system in place for regularly sourcing parts from China and another system in place for sourcing parts from other regions in case of unforeseen emergencies.

ze suppliers in Japan, Southeast Asia, and other regions outside of China. The components in question must be manufactured by suppliers with fac

printed circuit boards at Daikin’s headquarters in Shiga Prefecture, Japan, resumed after Shanghai’s closure, and the company has

the global chip shortage caused by the new crown epidemic. Using this knowledge to its full potential, we will set up a system to manufacture air conditioners wit

Imperial Data Bank, the number of Japanese firms operating in China dropped to 12,706 in June 2022, the lowest nu

ehicles. Lockdown measures in places like Shanghai have reduced production, an

the Taiwan Strait. In September, Alice Oyama started moving 50 different plastic product lines f

attention to the competitiveness of the supply chain in normal times, but when something happe

Leave a Comment

Your email address will not be published. Required fields are marked *