Acer, Asus, And HP Reportedly Shifted Some Manufacturing Back To China Because Of AI
Major tech brand Acer, Asus, and HP have reportedly shifted some of their manufacturing capacity back into China, primarily due to rising components costs, due to AI. That rising cost has also eaten into their margins. In a report by Nikkei, the increasing AI-related costs have left these companies with little recourse, forcing them to […] The post Acer, Asus, And HP Reportedly Shifted Some…
Acer, Asus, and HP have reportedly returned some of their manufacturing capacity to China due to rising component costs driven by the AI boom, according to a Nikkei report. The increased expenses have squeezed the companies' margins, leaving them with limited options, apart from the major player Foxconn, which has shifted production towards AI data centers.
Instead, these PC brands are expected to partner with smaller firms such as Luxshare, Huaqin Technology, and Longcheer Technology, among others. Luxshare, known for assembling iPhones, has won orders from HP, Dell, and Asus. The shift is primarily driven by cost pressures, as component prices for memory chips and others have surged significantly.
Suppliers to major PC brands agree that Chinese contract manufacturers, benefiting from the AI boom, are offering attractive pricing to entice international brands struggling with component cost hikes. Analyst Ivan Lam from Counterpoint emphasizes China's competitive edge in producing peripheral and structural components, an area where many other regions lag behind.
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