With the AV industry having experienced supply chain shifts over the past years, and in light of current geopolitical tensions altering the landscape of international business and trade, Xilica has decided to take steps to strengthen it supply chain resilience.
Xilica has expanded its manufacturing footprint beyond China to include Vietnam, Taiwan, and Thailand.
James Knight, CEO of Xilica, detailed the thinking behind this strategic shift and what it means for customers worldwide: “We’ve operated in Mainland China for many years, both in our own factory and through EMS partners. Over the past few months, we’ve complemented that with production in Vietnam, Taiwan, and Thailand. We want to ensure supply continuity and flexibility regardless of changes in tariffs, regulations, or local conditions.”
Knight continued: “Research from McKinsey shows that 92% of supply chain leaders have taken steps since 2020 to diversify their manufacturing footprint. They call it ‘strategic interdependence’ — not reducing connections but spreading them intelligently to manage risk. Southeast Asia, particularly Vietnam, has grown significantly as a manufacturing hub due to infrastructure investment and trade agreements.”
What does this mean for Xilica’s customers? Knight answered: “Customers operate in very different contexts. By having multiple production sites, we can meet those varied needs without compromising quality or lead times. It also provides redundancy. If one location faces disruption — be it natural disaster, logistics hold, or regulatory change — another can continue supply.”
Knight also believes the move will spur innovation. He said: “Diversification gives us access to a broader network of talent and specialist fabricators. Taiwan and Thailand, for example, have deep expertise in components and sub-assemblies, while Vietnam offers strong electronics assembly capacity. Working with multiple partners expands our co-innovation opportunities.”
The strategic shift is something that Xilica aims to pursue and expand in the years to come. Knight concluded: “This is part of a long-term manufacturing strategy. Our aim is to balance global capabilities with customer priorities, ensuring resilience today and flexibility for the future.”