HP and Asus move some PC production back to China, report says
Dell is weighing a similar shift as higher component costs squeeze manufacturers' margins, according to Nikkei Asia.
Rising component costs have prompted HP and Asus to bring part of their PC manufacturing back to China, Nikkei Asia reported. Dell is considering returning some production there as well, seeking to limit the impact of more expensive components.
Manufacturers anticipate savings from China's established infrastructure and lower input costs compared with alternative locations, according to the report. They have not formally dropped their commitments to diversify manufacturing outside China.
The change has left some suppliers questioning investments in Southeast Asia. A manager at an unnamed PC component supplier told Nikkei Asia that the business had constructed several Thai factories to serve PC customers. The manager said their eventual profitability was now uncertain and the investments might require a write-off.
PC manufacturers began seeking locations in countries with closer US ties after the Biden and Trump administrations imposed sanctions and tariffs on China in 2024 and 2025. Thailand, Vietnam and India were considered possible alternatives.
