Move Your Electronics Production Out of China — Safely and Strategically
We support companies transferring their electronics manufacturing operations to India or Malaysia, helping you build a more resilient, cost-effective supply chain.
Why Move Electronics Production Out of China?
Tariffs on Chinese imports and geopolitical risks are driving US importers to diversify. Even if tariffs are lowered slightly, many companies are choosing to move some or all of their electronics manufacturing out of China permanently.
Reducing reliance on China protects your business from the consequences of future conflicts between that country and the USA.
We feel that India and Malaysia are two of the most promising alternatives, and we will help you transfer production to either of those countries if we find your product is a good fit. Our approach is to prepare the manufacturing & testing processes in the new facility, and then validate those processes and monitor the trials and the ramp up closely. The objective is to avoid unnecessary risks or delays.
Why India and Malaysia? Shared Advantages
Both India and Malaysia stand out as Asian manufacturing options due to the following shared advantages:
- Proximity to China: Short shipping times for components arriving by sea.
- Lower geopolitical exposure: Neither is located in the South China Sea (as the map below shows), resulting in less risk from potential maritime blockades.
- English proficiency: Communication is generally easy and professional.
- Trade support: Both countries have been working closely with Washington DC to minimize tariffs on exports to the USA.
How to decide which is better for you?
- Need more cost control for labor-intensive operations and a future internal market? → India
- Need a high level of electronic manufacturing expertise? → Malaysia
- Unsure? We help you evaluate the best fit for your project based on product complexity, quality needs, and growth plans.
Advantages of transferring production to India VS Malaysia
How We Help You Transfer Electronic Production
Relocating manufacturing is not as simple as changing suppliers. A successful production transfer requires technical planning, close coordination, and validation at every step. That’s where we come in.
We support your business through the full process, from evaluation to post-transfer support. We suggest not to close the transfer project until the new manufacturer has demonstrated readiness and is truly up-to-speed.
The production transfer typically takes this form:
- Review of your current supplier(s) and setup in China
- Identify what makes sense to transfer (and what doesn’t)
- Evaluate BOMs, production documentation, checklists, jigs & fixtures, and other important elements
- Match you with vetted Indian or Malaysian supplier(s), or audit a short list you may have found
- Plan for trainings, site acceptance tests for special equipment (if any), and pilot build(s) to qualify capabilities
- Align quality requirements and set up control checkpoints
- Hand off assembly guidelines, jigs & fixtures, checklists, and so on, and arrange training
- Supervise pilot builds and all the work around them, confirm production readiness
- Conduct on-site inspections, process walkthroughs, and troubleshooting
- Oversee dual production in China and India/Malaysia (if necessary) to reduce your risk, at least until the new manufacturer has shown they are fully capable and ready
- Monitor initial batches for yield, quality, and consistency
- Provide supplier performance feedback and improvement planning
- Continue engineering and quality assistance if needed
What kinds of products are a good fit for India & Malaysia?
We transfer products such as:
- Consumer electronics
- Smart home devices
- Industrial IoT products
- Electronic medical devices (Malaysia especially)
- PCBAs and electronic subassemblies
You don’t need to move everything at once. Many importers begin by transferring one product to a new factory.
What Makes Our Approach Different?
We’re not what people call a “sourcing agency”. We get involved deeply in product design & development and in manufacturing.
We support importers like you who need to relocate their operations with minimal disruption, while maintaining or improving product quality in the new location. We have handled production moves for variety of products.
We also understand that India or Malaysia might be part of a broader diversification strategy. The implementation depends on whether you are following a “China Plus One” or a “China Exit” roadmap.
Now, let’s Talk About Your Move
The earlier you start, the more options you have.
Transferring production from China to another country is a major decision, but with the right partner, it doesn’t have to feel like rolling the dice.
Let’s talk about your needs and build a step-by-step plan to move your manufacturing to India or Malaysia.
Click here to discuss your production transfer from China to Malaysia.
FAQs
It depends on the complexity of your product, how ready your documentation and supply chain are, and whether you want to start by relocating only final assembly or you are more ambitious.
Most companies need 2 to 6 months from initial planning to stable production.
Yes, that’s what most companies are doing. You can import components from China to your new assembly location. In Malaysia, especially, logistics are improving with a China–Singapore rail link under construction.
Note, we are not a law firm, so any advice we may provide about the ‘made in [country]’ labeling need to be reviewed & confirmed from your side based on your own legal counsel.
Both are capable. It very much depends on the specifics of your project.
At the time of writing this page, products assembled in Malaysia or India generally qualify for lower tariffs when entering the US compared to China-made goods.
Most importers who want to move production away from China are also following a risk reduction approach.
Yes.
We stay involved after production ramps up to help with ongoing system audits, quality checks, supplier training, and troubleshooting.
The goal is not just to move your production, but also to make sure it keeps improving after the move.
