Canon eyeing outsourcing

September 25, 2003 – Canon Inc. is reportedly investigating plans to outsource manufacturing capacity abroad, due in large part to the emergence of China in the global market.

The Nihon Keizai Shimbun reports that Canon had earlier stated its intention to maintain 60% of its production in Japan, which only accounts for 25% of overall sales, but may be rethinking its position due to fluctuations in the yen.

CEO Fujio Mitarai said that savings as a result of outsourcing to China wouldn’t be significant, because of a small market and undeveloped sales channels. Moreover, he said, labor costs are miniscule when talking about production of high-end systems like steppers.


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