KAGA ELECTRONICS CO., LTD. here by announces that its new factory construction project in Mexico, aimed at strengthening and expanding its EMS* production base, has been selected for the Indo-Pacific and Central-South America Regional Supply Chain Involvement Support Project promoted by the METI, and that the maximum subsidy of 100 million yen (4.78 million RMB) has been approved.

The Indo-Pacific and Central-South America Regional Supply Chain Involvement Support Project is a subsidy scheme implemented by METI to encourage business initiatives that contribute to increasing the resilience of supply chains between Japan and the Indo-Pacific and Central-South America regions.

As announced on August 16, 2023, Kaga is strengthening and expanding its production base in Mexico through its wholly owned subsidiary TAXAN MEXICO S.A. DE C.V. to meet the increasing demand for EMS.

Since its establishment in 2017, TAXAN MEXICO’s EMS business has been focused on the assembly of lighting units used in four-wheeled vehicles intended for the U.S. market. In addition to meeting an increase in orders from existing customers, the construction of this new factory is designed to use the acquisition of new customers requiring the assembly of circuit boards used in air-conditioning equipment for the U.S. market as an opportunity to install the latest energy-saving equipment, promoting manufacturing that is both highly efficient and environmentally friendly. In the future, Kaga plans to expand its integrated production capability encompassing component molding, sheet metal processing, and finished product assembly functions, in addition to current unit assembly and circuit board assembly. Through the introduction of a system enabling the visualization of internal factory data and data linkage between Kaga’s global network of EMS bases in 10 countries, including Japan, Kaga plans to meet production demand for the North American and Central-South American markets, where continued growth is anticipated.

By promoting local and localized production, beginning with this new factory in Mexico, Kaga will reduce transportation times and control logistics costs, as well as contribute to the construction of resilient supply chains for the stable provision of products to the market in collaboration with its customers and suppliers.

About TAXAN MEXICO S.A. DE C.V.

Based on the know-how of production control in abroad, which has been accumulated in Kaga Electronics, TAXAN MEXICO provide Board assembly products, Semi-finished goods, and electric components to Japanises, Europian and US customers from San Luis Potosi in Mecixo.

About  KAGA ELECTRONICS CO., LTD.

In 1968, Kaga Electronics was established as an independent trading company which specializes in electronics. The company has continued to expand its operations to keep in line with the development of the electronics industry. The Kaga Electronics Group, as of March 31, 2024, consists of 66 group companies (22 domestic and 44 overseas entities), has 8,092 employees globally.

The four main business segments of Kaga are Electronic Products and Semiconductors, EMS, Information Equipment, and New Businesses. Kaga capital stock, as of March 31, 2023 stood at 12.1 billion yen (578 million RMB), And the posted consolidated sales of 608 billion yen (29 billion RMB).

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