By clicking the “I Accept” button, or by accessing, participating, or submitting any information, or using the Jabil Global Intelligence Portal or any of its associated software, you warrant that you are duly authorized to accept the Global Intelligence Portal Terms and Conditions on behalf of your Company, intending to be legally bound hereby, and your company shall be bound by the terms and provisions of the Global Intelligence Portal Terms and Conditions, accessible under the following link Portal T&Cs.
Global Commodity Intelligence
Q2 2025 | APRIL - JUNE
Global Commodity Intelligence
Q2 2025 | APRIL - JUNE
Jabil POV: Developing China-Based Resistors
Marisa Moreno, Sr. Global Commodity Management, Global Procurement
In an era marked by shifting global dynamics, China's pivotal role in manufacturing has spurred a paradigm shift in supply chain strategies worldwide. With a reliance on Chinese manufacturing facing mounting challenges like rising costs and geopolitical risks, companies are increasingly adopting the "China+1 Strategy" to diversify their manufacturing bases.
Conversely, China's internal push towards the "China for China" strategy underscores its focus on domestic market optimization and technological advancement.
For Jabil, a robust global supply chain is imperative, prompting a nuanced approach that integrates Chinese suppliers while pursuing the China+1 model. This balancing act reflects a commitment and a holistic approach to business growth and success in the region. By balancing diversification with localization, we can more successfully leverage the strengths of global and local supply chain partners to serve our expanding customer base in China better and drive sustainable growth in the region.
For this update, the resistor GCM team visited to assess capabilities and build relationships with key regional suppliers. These suppliers included Fenghua, UniRoyal/Uniohm, and Taiwanese manufacturers TA-I and Yageo.
Left-to-right: Quanni Yuang, Vice President UniRoyal; Heidi, Sales UniOhm; Bea, Sales Director RoyalOhm; Jabil GCMs Marisa Moreno and SuehLing Tang; Tyron Uniohm, Sales Director; and Joy, Sales UniOhm.
While there might be a slowdown in some global markets, for sectors such as automotive, AI, white goods, and notebooks, the Chinese market appears to be experiencing consistent domestic. The utilization rates of resistor suppliers in China are hovering in the 70-80% range, which suggests significant demand for these suppliers. One of the key drivers of growth is the Chinese government's implementation of various policies and initiatives to stimulate domestic consumption and support key industries. This included subsidies for electric vehicles, incentives for AI development, and initiatives to promote the adoption of energy-efficient appliances. China has been investing heavily in technological innovation, including AI research and development, which has led to adopting AI technologies across various sectors, including automotive and electronics manufacturing.
All the suppliers we met with have communicated investment plans focused on supporting the Chinese market and expressed their interest in supporting the global markets with Jabil.
The “China+1 Strategy” and the “China for China Strategy” aim to address specific challenges and opportunities within China’s dynamic business environment but focus on different aspects and objectives.
KEY TAKEAWAYS
- Keeping current on the market strategies to maintain a robust global supply chain is of utmost importance.
- We will continue working on the relationships and development of key resistor suppliers while considering their strategies.
- While the relationship with suppliers is key, quality control, compliance, and risk management will all be considered when adding any new supplier to our preferred supplier list.
- Building long-term relationships based on trust, transparency, and mutual benefit is key to successful supplier development in China and other regions.
If you have any other questions or need any additional information, please don’t hesitate to reach out to me at Marisa_Moreno@jabil.com.
Marisa Moreno
Sr. Global Commodity Manager, Global Procurement
Jabil (Singapore) Pte. Ltd.. 16 Tampines Industrial Crescent, Singapore 528604
Back to Top