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Nordic to tap Philippines as supply chain HQ

Posted: 22 Jul 2008 ?? ?Print Version ?Bookmark and Share

Keywords:RF? headquarters supply chain? development backend test?

Ultralow power RF specialist Nordic Semiconductor ASA is looking into setting up a regional supply chain headquarters in Manila, the Philippines. This will later be expanded to include a regional RF test-engineering group to support local backend test development and subcontract partners in Asia.

"As our ultralow power (ULP) 2.4GHz transceiver production volumes rise, we recognize a need to further tighten communication links with our supply chain in Asia by creating a more local organizational structure," says Ole-Fredrik Morken, supply chain manager at Nordic, who will be in charge of the relocation.

The new operation will be located within just a few miles of a Manila facility of Nordic's long-term test subcontractor, Amkor Technology, where Nordic's 2.4GHz ULP transceivers are tested on a base of permanently installed, Nordic-owned test systems.

With the completion of this relocation, Nordic will now have its entire manufacturing and supply chain operations based in Asia, bar only a few legacy products being produced in Europe. Organizationally, however, everything else is to remain headquartered in Norway; including Nordic's global sales and marketing headquarters in Oslo, and its global R&D and registered company headquarters in Trondheim.

Commenting on this relocation and recruitment drive, Nordic Semiconductor CEO, Svenn-Tore Larsen said: "Although we are a publicly listed, Norwegian company, we sell to a global customer base within the fiercely competitive global electronics market. Nordic has now reached a size whereby like almost all other leading fables semiconductor companies in Europe, it is no longer feasible to remain globally competitive without relocating the vast majority of our test and manufacturing operations to Asia."

"Our supply chain operations will now join our existing test and manufacturing operations in Asia that have been successfully located in the region for many years."

On the specifics of the supply chain relocation, Morken elaborates: "The objective here is to continue to guarantee such critical performance parameters as fast lead times, consistently high product quality, and rapid production and customer support response times. In order to achieve this on an increased volume basis, we recognize that we need to have a local presence to where our manufacturing takes place."

Nordic is now looking to recruit two supply chain and production professionals locally in Manila. Nordic will also shortly be seeking to recruit several test engineers when it establishes its new RF test group.

"Forging extremely close links to our Asian base of subcontractors has always been an important part of Nordic's supply chain strategy and success story," summarizes Larsen. "And re-locating our supply chain headquarters to the Philippines will only ensure this success continues long into the future."

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