Taiding-KY (4927) mainly produces medium and low-order hard boards for printed circuit boards (PCBs). Not only is the product price not high, but also does not compete for the high-end sheet market, but also faces the land, Japan, and Korea. Competition from other Taiwanese businessmen. Under the strong enemy, Taiding still has a day in Thailand. Chairman Wang Shu said that adhering to the concept of profitability is a good product, cultivating a solid corporate culture and driving product quality stability is the foundation for Taiding’s profitable and stable growth.
The following is a summary of interviews between reporters and Wang Shu.
What is the reason why Taiding has been sticking to the hard board field?
A : In fact, the company has also evaluated the possibility of producing soft boards, but our strengths are in a lot of control, not a small variety, not to mention the market demand for medium and low-end products is still huge. As far as the data is concerned, the demand for PCBs in the world will be nearly 2 trillion yuan (NTD, the same below), of which the demand for traditional 2- to 8-layer boards is about 30%, nearly 600 billion, and Taiding only does it in a year. More than 10 billion, only a little more than 2%, why not so big market.
However, the traditional board has low unit price and low technology. Therefore, the management threshold is very high. Many of the same industry do not make money on traditional boards. The low profit margin of products is not low, but the management cost makes them burdensome. The key to our low cost is the reduction of scrap, the stability of personnel, the increase in output, and the accurate payment of money on the knife edge. Although Taiding can’t be technically handsome, it can be refined and maximized.
What are the advantages of developing in Thailand today?
A : First of all, the national characteristics, the factory is neither high-tech nor fully automated, it will require a lot of labor, then the nationality and culture of the labor is crucial. One Thai is no better than one Chinese, but 100 Thais will definitely outsell 100 Chinese. There are many problems in producing PCB every day. Thai people have a more supple temperament. When you are willing to communicate in depth and listen to their voices, they will tell the problem honestly and frankly. If you switch to another place, it may be to protect yourself. Employees will find many reasons to shirk their responsibilities, causing managers to take longer to solve problems.
In addition, the minimum basic wages in Thailand are similar, and the Thai people are optimistic and comfortable with a job, and the turnover rate is very low. Secondly, an operator is able to complete a single order, work 28 days including overtime pay, allowances, etc., which is almost 1 THB, less than 4,000 renminbi, whether it is stability or labor expenditure, compared to the mainland. Have an advantage.
Then there is environmental protection. The mainland standard is stricter than Taiwan, and Thailand is lighter than Taiwan. Moreover, Thailand is not a country with dense electronics industry. As long as it can meet the standards and norms, there will be basically no limit on the requirements. If the cost of environmental protection is quantified, hundreds of millions of equipment may be invested in the mainland, and it may be tens of millions in Thailand.
Thailand’s first returning Taiwanese listed Taiwanese
Why did Taiding choose to return to Taiwan?
A : The company has to expand its scale and strive for international customer orders. The instruments, equipment and production capacity that need to be expanded have to spend a lot of money. The original shareholders have not been able to cope, and the listing financing has become the way that Taiding has to go. At first, the plan was to be listed locally in Thailand. After field observations, 90% of all transactions in Thailand were traditional industries, and only 10% of the electronics industry. It may be difficult to raise funds in the future. But in Taiwan’s electronics industry, the average daily stock market trade is about 50%, and the hotline is 6 or 70% or even higher. It happened that Taiwan’s investment in Taiwan returned to Taiwan in 2011, which was the opening of the KY shares. The company decided to make a sharp turn to catch the train and become the first Taiwanese businessman to return to Thailand.
What is the view of the industry’s new south?
A : If it is because the Sino-US trade war has driven the industry to move south, and then the business of Taiding has increased, the visibility of this situation in the short term is actually not high. After all, it has to go through procedures such as quotation, certification and mass production. However, the message from the client assembly plant is indeed considering moving slowly, and the degree of inquiry has risen significantly, including going to Vietnam, Indonesia, Cambodia, Thailand, etc. Looking at the overall situation, our Thailand in Southeast Asia is expected to benefit.
However, the southward migration was not as simple as imagined. As early as a decade ago, many of the same people sent people to visit Southeast Asia. Why didn’t they come over? Because the whole process is very time consuming, we must first find the land, land preparation, visa, piling, construction, etc., at least 2 to 3 years, 3 years later, start to invite people, station equipment, trial production, certification, etc. The most important thing is Culture is different, but it is not so easy to promote the south.
Cultural integration is the biggest key
What advice do you have for the industry that wants to move south?
A : The key is cultural integration. There is a Japanese business in Thailand. It has not been too successful for more than a decade, because they think that the Japanese are coming to manage Thai people. The nationality is distinct and the culture is always difficult to integrate. There are also other practices, copying the successful case of setting up a factory in the mainland to the Thai factory. This set is also ineffective because the culture has always maintained conflict. To the development of Southeast Asian countries, it is definitely not “replication, paste”. Many companies’ management only wants to position themselves at the top level, and can’t hear the underlying voice. If the upper and lower layers cannot be connected, there will be problems that cannot be solved. Therefore, we must first accept the humanities here, respect the nationality here, appreciate him and like him. Thai people have advantages and of course have shortcomings. Preserving advantages and improving shortcomings is the real purpose of our coming here. Through effective communication, we can find out instantly. And solve the problem, let the company’s management and the grassroots two-way communication, seamless integration, is the key to the integration of Taiding.
Source: Business Times