Rakon Crystal Chengdu Opening
Rakon (RAK) opened its new US$35 million facility in western China yesterday, marking a significant step in the company’s global expansion that will see it supply China’s fast-growing domestic market, as well as international markets, with high precision, high quality frequency references.
China currently accounts for over 55% of Rakon’s existing production and the expansion of manufacturing operations in China will help fulfill the requirements of that country’s rapidly developing consumer market.
Rakon plans to invest further over the next two years to meet expected growth in demand. It will have capacity to produce up to 400 million units per year, compared to Rakon’s New Zealand facility which, at peak production, produces 180 million frequency control products per year.
Brent Robinson, Rakon Managing Director, said the Chinese plant would provide significant additional capacity, at a lower cost base, for the high volume consumer products.
“We are grateful for the support from the Chengdu authorities. Our Chengdu plant is of strategic importance for our expansion in China.”
Rakon holds several records for its technology, including being the first to develop the 0.5ppm TCXO and most recently the world’s smallest Oven Controlled Crystal Oscillator (OCXO). The company maintains a technology and market leadership position with an over 50% market share in non-cellular GPS, 60% in personal navigation devices and 80% in EPIRB.