Mini–Circuits unscathed by US-China trade war

GEORGE TOWN: Mini–Circuits Technologies (Malaysia) Sdn Bhd, the local arm of US multinational electronics giant Mini-Circuits, has registered impressive profit margins despite fears over a global slowdown due to the fallout from the US–China trade war.

In fact, the consolidation of Mini–Circuits can be cited as an example of how some manufacturers here are benefiting from the impasse in the US–China trade ties, said the group chairman and president Datuk Seri Dr Kelvin Kiew (pix).

Kiew spoke to theSun on how the company managed to adjust its business model to cope with the adversities from rising trade tariffs from both US and China.

“Initially we were worried, but it has turned out to be good because we have a worldwide network of production lines so we are not reliant on China alone.

“Others may not have the leverages that Mini–Circuits enjoys so it may be difficult for them; but for this company, it has turned out positive.”

For Mini-Circuits, the trade war meant high tariffs on products shipping from China to US and vice versa as well that no US firms could have business dealings with China’s telecommunications conglomerate – Huawei.

After reviewing its client list, Mini-Circuits found that it had only supplied 1% of its products to Huawei and to avoid paying the additional tariffs, it relocated some of its production lines from China to Penang and India.

The group has 16 factories in Europe, India, Indonesia, the US, Taiwan and China, while Penang is considered as its main hub in Asia, according to Kiew. It has a customer base of 20,000 and global workforce of close to 700 employees.

“So we are well positioned to address the trade war although we hope that it can be resolved so global trade can resume at a robust pace.”

The trade war has seen the financial clout of its Penang operations growing where last year it recorded its highest ever revenue growth of over 100%, while there is a 50% growth projection for its global operations this year.

As Mini–Circuits is privately held, Kiew said that he was not at liberty to disclose the financial figures but stressed that the company was in a strong position.

The revenue gained has allowed the group to consider expanding its Penang operations in the future to complement its present one which is already one of the biggest in the Bayan Lepas Free Industrial Zone.

In the future, Kiew expects the products of Mini–Circuits to be applied in robotics, artificial intelligence and automation.

source https://www.thesundaily.my/business/mini-circuits-unscathed-by-us-china-trade-war-KN1429639