Aohong Electronics Opens First Overseas PCB Manufacturing Base in Thailand as China+1 Strategy Accelerates

Chinese PCB Maker Establishes Southeast Asian Footprint

On May 26, 2026, Chinese PCB manufacturer Changzhou Aohong Electronics Co., Ltd. (605058.SH) officially inaugurated its first overseas manufacturing subsidiary in Thailand. The facility marks a significant milestone in the company’s internationalization strategy and represents the broader trend of Chinese PCB manufacturers establishing production outside China to meet customer demand for supply chain diversification.

The Thailand subsidiary, AOHONG ELECTRONICS (THAILAND), is positioned to serve international customers — particularly in the automotive, consumer electronics, and industrial sectors — who require a manufacturing source outside of mainland China for tariff, geopolitical, or supply chain resilience reasons.

Why Thailand for PCB Manufacturing?

Thailand has emerged as one of the preferred destinations for Chinese PCB manufacturers expanding overseas, due to several factors:

Strategic advantages:

• Established electronics manufacturing ecosystem (hard disk drives, automotive parts)
• Free trade agreements with ASEAN, Japan, and the EU
• Lower tariff exposure compared to China for exports to the US and EU
• Competitive labor costs with available technical workforce
• Existing supply chains for raw materials and components
• Government incentives through the Board of Investment (BOI) for electronics manufacturing

Industry peers in Thailand:

• Unimicron (Taiwan) — operational since 2005
• KCE Electronics (Thailand) — established domestic manufacturer
• DSBJ (China) — recently expanded Thai operations
• Several other Chinese PCB firms announced Thailand investments in 2025-2026

The China+1 Reality in PCB Manufacturing

The PCB industry’s geographic diversification accelerated sharply in 2025-2026, driven by:

1. US-China tariff environment: PCBs manufactured in China face 25%+ tariffs when exported to the US, making Southeast Asian alternatives price-competitive
2. Customer requirements: Major OEMs (automotive, telecom, defense) increasingly require at least one non-China PCB source in their approved vendor list
3. Supply chain risk: The Gulf conflict’s disruption of Chinese PCB production (40% cost increase reported in early 2026) validated the need for geographic diversification
4. EU supply chain due diligence: Upcoming EU regulations favor diverse, auditable supply chains

Aohong’s Thailand move is not a relocation — it’s an addition. The company maintains its primary manufacturing in Changzhou, China, while adding the Thailand facility to offer customers geographic optionality. This dual-source model is becoming standard practice for mid-to-large Chinese PCB manufacturers.

Implications for Global PCB Buyers

For hardware companies sourcing PCBs, the expanding Thailand manufacturing base creates practical options:

• Same Chinese manufacturer quality — established processes transferred to new site
• Tariff-advantaged routing — Thailand-origin PCBs face lower or zero tariffs in many markets
• Shorter logistics to some markets — Thailand is closer to India, Middle East, and European markets
• Risk distribution — not all eggs in one geographic basket

However, new facilities typically need 12-18 months to reach full process qualification and volume production. Early engagement with these facilities during their ramp-up phase can secure favorable pricing and priority allocation.

AtlasPCB’s Position

AtlasPCB operates primarily from our China manufacturing base, where we maintain the deepest process capabilities for HDI, rigid-flex, and high-frequency PCB production. For customers requiring supply chain diversification discussions, we work with our partner network to identify the optimal manufacturing strategy balancing cost, capability, and geographic requirements.

The industry-wide expansion into Southeast Asia benefits all participants by increasing global PCB capacity and providing customers with genuine choice in their supply chain architecture.

Source: IC&PCB Union, May 26, 2026. Changzhou Aohong Electronics is listed on the Shanghai Stock Exchange (605058.SH).

Image: ThisisEngineering via Unsplash

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