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Shifting supply chains: HP to move laptops production to Thailand
HP is planning to shift the production of millions of consumer and commercial laptops to Thailand and Mexico, in an effort to diversify its supply chain beyond China.
The move is a response to geopolitical uncertainties and rising manufacturing costs in China.
Key Takeaways
- HP is diversifying its personal computer supply chain by shifting production of laptops to Thailand, Mexico, and Vietnam, reducing its reliance on China.
- Dell has already launched a campaign to exclude “made in China” chips from its products and plans to make 20% of its laptops in Vietnam this year.
- This shift in production by HP and Dell highlights the growing trend among American tech companies to move away from China and establish production hubs in Southeast Asia due to geopolitical uncertainties and rising manufacturing costs in China.
Global tech companies are continuing to shift production away from China as tensions between Beijing and Washington simmer, with HP considering moving production of some of its commercial notebooks to Mexico and a portion of consumer laptops to Thailand. The company’s planned shift to Thailand would further enhance the tech supplier base in south-east Asia, making it more competitive vis-à-vis China.
Dell has also launched a similar campaign to exclude “made in China” chips from its products and reduce its use of electronic components from China. Apple has already started making MacBooks in Vietnam.
The shift in production will help Vietnam and Thailand build up their PC supply chain ecosystem and make Southeast Asia a more attractive option for computer makers. However, the supply chain for notebook computers is deeply rooted in China, making it difficult for companies to completely shift away.
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