Kyocera, Meiko, other Japan makers seek investments outside China

TOKYO — Japanese manufacturers are shifting capital investment to Southeast Asia, India and North America as part of a trend toward diversifying supply chains away from China in response to geopolitical concerns. The move, however, may risk transferring production to less efficient locales.

Kyocera will increase production of capacitors used in smartphones and electric vehicles at its factory in Thailand. Among Southeast Asian countries, Thailand’s “political situation is relatively stable and its human resources are easy to employ,” said Koichi Kano, a director at Kyocera. The Japanese electronics group plans to invest up to 100 billion yen ($671 million) in the factory over three years beginning in fiscal 2023 to make it a key production base capable of exporting products both to the U.S. and China, which are still entangled in trade disputes.