In an effort to diversify its supply chain outside of China, HP plans to move the production of millions of consumer and business laptops to Thailand and Mexico. The action is a reaction to the changing geopolitical landscape and growing Chinese production costs.
By moving the manufacturing of laptops to Thailand, Mexico, and Vietnam, HP is lowering its reliance on China and diversifying its supply chain for personal computers.
Dell already has a strategy in place to get “made in China” chips out of its products, and this year, it wants to produce 20% of its laptops in Vietnam.
Due to geopolitical unpredictability and increased manufacturing costs in China, American tech companies are increasingly choosing to build production hubs outside of China, as demonstrated by the shift in production by HP and Dell.
As tensions between Beijing and Washington rise, international tech companies are continuing to move manufacturing away from China. HP is considering transferring part of its commercial notebook production to Mexico and some of its consumer laptop production to Thailand. The company’s proposed relocation to Thailand will strengthen the region’s tech supply base and increase its ability to compete with China.
A similar drive to eliminate “made in China” chips from its devices and lessen its reliance on Chinese electronic components has also been undertaken by Dell. In Vietnam, Apple has already begun producing MacBooks.
The change in production will make Southeast Asia a more alluring alternative for computer manufacturers and assist Vietnam and Thailand in developing their PC supply chain ecosystems. It is challenging for businesses to totally reorient themselves away from China, though, as the supply chain for notebook computers is firmly established there.
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SOURCE: https://www.thailand-business-news.com
