Kaga Electronics Establishes Kaga EMS America in U.S.

Kaga Electronics Establishes New U.S. Company

Kaga Electronics Co., Ltd. has established Kaga EMS America, Inc. in Schaumburg, Illinois, to support customer development, sales and marketing in the United States. The new company will strengthen Kaga Electronics’ automotive-related business in the country and is scheduled to begin operations from October. The move responds to the growing trend of shifting manufacturing plants toward North America amid U.S. tariff issues. Kaga EMS America has capital of USD 1 million (JPY 160 million), providing a dedicated U.S. base for developing customers and supporting the company’s expanding automotive electronics activities across the region.

Ownership and Manufacturing Capabilities

The new company was jointly established by two Kaga Electronics subsidiaries. Taxan Mexico S.A. DE C.V., the group’s Mexican subsidiary, holds an 80% stake and operates an electronics manufacturing service business that undertakes contracted development and production of automotive electronic equipment for the U.S. market. Kaga (H.K.) Electronics Ltd., a Hong Kong-based subsidiary operating in South China, holds the remaining 20% stake. Its activities include circuit board mounting and finished product assembly for the North American market, giving the new U.S. company access to established manufacturing and assembly capabilities within the wider group.

Mexico Manufacturing Supports North American Expansion

Kaga Electronics said the U.S. company will focus on developing new customers while making full use of its manufacturing plants in Mexico. Those facilities offer tariff advantages through the U.S.–Mexico–Canada Agreement (USMCA), making Mexico an important manufacturing base for serving the North American market. By combining U.S.-based customer development and sales support with existing Mexican EMS capabilities and South China assembly operations, Kaga Electronics aims to strengthen its automotive-related business and respond more effectively to changing manufacturing footprints and trade conditions in North America. The strategy also positions the company closer to customers in the United States.

Frequently Asked Questions

Why did Kaga Electronics establish Kaga EMS America?
Kaga Electronics established the U.S. company to develop customers and strengthen automotive business while responding to manufacturing shifts toward North America. Kaga EMS America will provide customer development, sales and marketing support from Schaumburg, Illinois. The company has USD 1 million (JPY 160 million) in capital and will leverage manufacturing capabilities within the group. In particular, its Mexican plants can support the North American market while benefiting from tariff advantages associated with the U.S.–Mexico–Canada Agreement. The structure combines local customer engagement with established regional production capabilities.