Identiv announced the full completion of its two‑year manufacturing transition from its Singapore plant to a new, state‑of‑the‑art facility in Bangkok, Thailand, on December 18 2025. The move consolidates all RFID production under a single, lower‑cost location and establishes a multicomponent manufacturing (MCM) capability that will accelerate the commercialization of next‑generation Internet of Things (IoT) products.
The Bangkok plant is expected to reduce fixed‑cost exposure and improve manufacturing scalability. Management projects the transition to lift gross margins from the current GAAP level of 10.7% in Q3 2025 to a long‑term non‑GAAP target of 35%. The shift follows a dramatic turnaround in margin performance: GAAP gross margin rose from –14.9% in Q4 2024 to 10.7% in Q3 2025, while non‑GAAP margin improved from –5.2% to 19.1% over the same period. These gains are largely attributable to lower labor and overhead costs in Thailand and the higher‑margin mix of IoT products.
Revenue has trended downward as Identiv exits lower‑margin legacy businesses. Q3 2025 revenue fell to $5.0 million from $6.5 million in Q3 2024, a 23% decline driven by the divestiture of the Physical Security Business and the loss of a large customer. The company’s focus on high‑value healthcare and logistics IoT solutions is expected to offset this decline over time, as the new MCM facility enables rapid deployment of advanced BLE tags and other complex IoT components.
CEO Kirsten Newquist emphasized that the transition “marks the end of a successful two‑year process and delivers a cost‑efficient, high‑quality base that will drive our future growth.” She added that the MCM capability “will enable rapid commercialization of advanced BLE and healthcare applications that are central to our Accelerate strategy.” Chief Strategy Officer Dr. Manfred Mueller noted that the MCM approach “orchestrates product design, process engineering, material science, and testing” to create a competitive advantage in the IoT market.
Investors have largely priced in the transition, reflected in muted trading activity around the announcement. The move is viewed as a strategic step toward Identiv’s transformation into a pure‑play IoT specialist, with the potential to unlock higher‑margin revenue streams and improve operating leverage as the company scales its new manufacturing base.
The completion of the Thailand transition is a key milestone in Identiv’s broader strategy to divest non‑core assets, such as the Physical Security Business sold for $143.9 million in September 2024, and to focus on high‑margin IoT solutions. The company’s long‑term non‑GAAP gross margin target of 35% signals confidence that the cost advantages of the Bangkok plant, combined with the higher‑margin product mix, will sustain margin expansion beyond the initial transition period.
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