Canon is shutting down its Zhuhai factory in south China, citing low compact camera demand and chip shortages

DPReview has confirmed Canon is in the process of shutting down its Zhuhai manufacturing facility in south China.

On January 14, South China Morning Post reported Canon was planning on shutting down ‘part’ of its production line in its Zhuhai factory in southern China, where it manufactures many of its compact cameras. The move, according to a Canon China public relations representative, was being considered due to the shrinking demand for compact camera systems, problems from the pandemic and the ongoing chip shortage.

Later that day, Reuters shared a similar report, but suggested Canon was considering shutting down the entire factory, not just ‘part’ of the production line. After speaking with a Canon representative, DPReview can now confirm Canon is in the process of shutting down the Zhuhai plant in its entirety.

In a statement to DPReview, Canon Inc. said:

‘It is true that we are planning to cease manufacturing at Canon Zhuhai. With the guidance of the Zhuhai city government and High-Tech Zone authorities, discussions are currently underway with Canon Zhuhai employees, suppliers, and other affiliated parties. As these discussions are currently in progress, we cannot yet disclose any information. Further announcements will be made if and when deemed necessary.’

The ‘High-Tech Zone authorities Canon is referring to are government officials in charge of the Zhuhai National High-Tech Industrial Development District, which is a 9.8 square kilometer (3.8 square mile) district consisting of four industrial parks: Baijiao, Nanping, Sanzao and Zinqing.

A screenshot from Canon Asia’s website showing a summary of the Canon Zhuhai factory.

According to Canon Asia’s website, 1,325 employees work at the factory, which was built in 1990. Canon Asia says the facility produces digital cameras, digital video cameras and lenses, although the specific models manufactured at this facility are unclear, even after inquiring with a Canon representative.

As Canon’s statement to DPReview notes, discussions are still ongoing and no definitive timeframes have been laid out. We will update this article accordingly when Canon releases any further news on the shuttering of its Zhuhai factory.