Rakon says its new factory in China will allow it to pursue bigger customers as the company can make more than double the number of components there than in New Zealand.
The listed company, which makes components for global positioning systems and mobile phones, opened a $35 million facility in Chengdu this week.
The new factory is in the heart of the city's technology district, just across the road from one of its customers, Foxconn, the maker of iPods and iPads.
At its peak, Rakon's factory in Auckland makes 180 million components a year. The new factory in Chengdu will start making 80 million components a year, with capacity to expand.
Rakon's executive director Darren Robinson says he expects the company to receive orders for 400 million Chinese-made components a year in three years time.