Overseas suppliers currently account for approximately 57 percent of Toshiba's manufacturing components. In order to cut costs, the company will source more than 70 percent of its supplies from abroad starting in April of 2010.
Cost efficiency is essential to electronics manufacturers, especially those selling to emerging markets in Asia. The Wall Street Journal also reports that Hitachi, another Japanese manufacturer, will compete with Toshiba by increasing dependence on overseas suppliers as well - reducing its own per-unit production costs by as much as 40 percent.
Toshiba is currently the world's second-largest manufacturer of NAND-type chips - used in televisions, computers, gaming systems and other consumer electronics - trailing only Samsung.
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