September 24—TDK-Lambda plans to increase its British manufacturing output by 50 percent, reports Evertiq. The Japanese firm will expand its U.K. production capacity by redeveloping the production facility it maintains in Ilfracombe, England.
The semiconductor company is making the move to improve its competitiveness and avoid international trade headwinds.
Ilfracombe Facility Redevelopment Plans
TDK-Lambda will spend £11.5 million ($14.6 million) over the next 3 ½ years to expand and modernize its British production facility.
The company is building out the plant’s footprint to accommodate a new printed circuit board (PCB) assembly space and a configuration and test area. The manufacturer is also revamping the site’s research and development lab, adding offices and installing a health and fitness center. Moreover, the firm is streamlining the complex by automating its end-to-end material flow.
TDK-Lambda does not plan to take the over 50-year-old facility offline during the redevelopment process. Instead, the company will utilize a phased renovation strategy to keep the site going throughout the remodeling process.
Why TDK-Lambda is Updating its Ilfracombe Facility
The firm, which specializes in developing power management devices, revealed it had two reasons for revitalizing its Ilfracombe facility.
First, the company’s medical and laboratory power supplies have experienced a significant increase in demand since the coronavirus pandemic began. By redeveloping its English complex, the firm will have greater resources to address the needs of its customers.
Last year, the manufacturer opened an EMC Centre next to the Ilfracombe site to bolster its local electronic component evaluation capability.
As research group Omdia predicts the global power supply market will grow to $26 billion in value by 2024, TDK-Lambda is smart to begin ramping up its production capacity.
Second, the company wants to head off potential supply chain disruption related to the U.S.-China trade war. At present, TDK-Lambda maintains seven production facilities throughout the world and its largest factories located in the Sino mainland. The firm’s plan to upgrade its Ilfracombe site will help mitigate the impact the international commerce dispute has on its operations.
TDK-Lambda’s relatively modest eight-figure capital expenditure should allow the company to improve its sales and lower its risk. From a cost-benefit standpoint, the chipmaker’s English redevelopment effort looks like a completely worthwhile allocation of resources.