News Release

October 31, 2022
KAGA ELECTRONICS CO., LTD.
TSE, Prime Market: 8154

Notice regarding commencement of operations
at new factory in Malaysia
New factory will expand production capacity in ASEAN region,and accelerate EMS Business growth strategy
KAGA ELECTRONICS CO., LTD. (Headquarters: Chiyoda-ku, Tokyo;
Representative Director, President & COO: Ryoichi Kado; hereinafter the“Company”) hereby announces that it has constructed a new factory on theoutskirts of Penang, Malaysia. This factory, which commenced full-fledged operationin October 2022, will augment production capacity for the EMS business in theASEAN region.
1. Purpose of the New Factory Construction
Since the Company’s foundation in 1968, we have expanded our business fields
by catering to the diverse needs of our customers with the corporate philosophy of“Everything we do is for our customers.” In recent years, the EMS (Electronics
Manufacturing Services) business in particulars, which has been positioned as itscore growth driver, the Company has responded to increasingly frequent requests
from customers by forging ahead with the expansion of production sites both
domestically and overseas, and currently operates 21 factories in 10 countries.
In 2000, the Company established local subsidiary KAGA COMPONENTS(MALAYSIA) SDN. BHD. on the outskirts of Penang, Malaysia, where it has been
manufacturing power supply products, sanitary equipment, power tools, andelectrical equipment substrates for consumer electronics. The semiconductor
shortage and the disruption of the global distribution network that occurred after
the outbreak of the COVID-19 pandemic are in the process of being resolved, anddemand from customers is recovering sharply. Taking this opportunity, theCompany made the decision to renew the factory building and facilities, which had
suffered from age-related deterioration, with the aim of further improving
production quality and efficiency, and putting in place a framework that can
respond to robust demand.
The new factory’s location within the same industrial estate as the existing
factory and about 3.5 km from it in a straight line is optimal in terms of both costand personnel, as it enables control not only of relocation expenses but also ofoutflows of human resources. In addition to using this increase in productioncapacity to increase orders from existing customers and address the need for
distributed manufacturing in the ASEAN region, the Company will also work to winorders for new projects from local companies, aiming for net sales of ¥10 billion
within five years of the commencement of operations.
<Exterior of factory><Interior of factory>

2. Outline of New Factory1) Site name

KAGA COMPONENTS (MALAYSIA) SDN. BHD.

2) President

Kenichi Senoo

3) Address

No. 1415, Lorong Perusahaan 1, Kawasan
Perusahaan Perai, 13600 Perai, Penang, Malaysia

4) Floor area

11,150 m25) Scheduled commencementof operations

Full-fledged operations commenced in October
2022
Various power supply products and sanitaryequipment, industrial equipment, and electricalequipment substrates for consumer electronics

6) Items produced7) Number of employees

900 (max. 950)

8) Investment

Approximately ¥1 billion over five years (land andbuilding are leased)

The Company aims to use the enhanced competitiveness of the EMS Business asa lever to form “Japan’s No. 1 corporate group in the industry” with net sales of¥750 billion, and to then become a competitive world-class company that ranks
alongside overseas competitors in the ¥1 trillion range. To this end it will expand
the scale and enhance the quality of Group management.
■Inquiries concerning this matter
KAGA ELECTRONICS CO., LTD.
（URL：https://www.taxan.co.jp/en/）Ichiro Shirai, General Manager
Investor Relations & Public Relations Office
TEL: +81-3-5657-0106 / FAX: +81-3-3254-7133
Address: 20 Kandamatsunagacho, Chiyoda-ku, Tokyo 101-8629, Japan