SaltWire's Atlantic regional weather forecast for October 19, 2023 | SaltWireAMSTERDAM - Making more products for China locally and buying chips from several suppliers are just two of the supply chain changes Dutch healthcare technology firm Philips is making due to rising trade tensions, its CEO Roy Jakobs told Reuters.
Following computer chip shortages during the COVID-19 pandemic that hit profits, the company is also changing how it procures tailor-made chips that go into its CT scanners and ultrasound machines. It now favours newer but more expensive chips to ensure they are available from several locations in a pinch."Before we were all seeking the optimal global supply chain efficiency," he said.
But"it is also important that I make sure the rest of Philips does well," he said. Shares are up 31% in 2023. Philips' China business boomed before the pandemic, but that trend is slowing, Jakobs said. More modest future growth will come from China's increasing reliance on healthcare technology as its workforce shrinks and ages.
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