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Sony to close Taiwan production |
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September 23, 2000
TAIPEI, SEPT 22 (AP) - Japan's Sony Corp. will cease its production of video products in Taiwan and move the operation to Malaysia and China, the company announced Friday. The need to improve efficiency and cut costs prompted the decision to move the assembly lines to countries with cheaper labor, Sony said. Established in Oct. 1984, Sony Video Taiwan produces video decks, laser disk players and DVD players. After closing the operation in December, Sony will establish a technology center in Taiwan for product design, engineering and procurement, the company said. The announcement sparked speculations that more foreign-invested electronics firms may pull out of Taiwan because of its rising labor costs and concerns about electricity and water shortages. Vice Economics Minister Yin Chi-ming acknowledged Sony's planned pullout indicated Taiwan's electronics assembly lines are gradually losing competitiveness. But he said it was part of a Sony strategy to readjust its global operations. Sony has decided to buy more computers and parts from Taiwan, he told reporters. Its Taiwan purchases could exceed U.S. dlrs 300 million this year, triple that of last year, he said. |