Dell and HP notebooks were mostly manufactured in Chongqing and Kunshan. (Image credit: notebook check)

Nikkei: Computer makers HP and Dell plan to move production out of China

Faradita Prayusti
Business & Industry
Electronic Device
Jul 04, 2019
1858
On Wednesday, Asian Nikkei Review reported computer maker companies HP Inc and Dell Technologies are going to shift up to 30 percent of their laptop production out of China. These two companies’ notebooks were mostly manufactured in Chongqing and Kunshan - cities of China, added Nikei.

Another big U.S-based technology firms such as Alphabet Inc, Amazon.com, Microsoft Corp, Sony Corp, and Nintendo Co Ltd were also reported to transfer some of their game console and smart speaker production out of China, according to Nikkei.

Amazon and Nintendo are rumored to choose Vietnam as an alternative, while Microsoft is reportedly preferring Thailand and Indonesia.

Acer, Asustek Computer and Lenovo Group – the leading PC maker firms- are also considering the plans to move their manufacturing out of the country, reported Nikkei.

The companies’ decision to moving out doesn’t change even though both of the leaders of the U.S and China had agreed on the trade war ceasefire after their meeting at G20 Summit in Osaka last week.

According to the Chinese state-run news agency Xinhua, Trump and Xi made an agreement to a new truce in the trade war. The U.S government would postpone the additional tariff of $300 billion on “Made-in-China” products, added the news agency.

Despite the ceasefire, the situation remains uncertain and increasing costs in China were also driving manufacturers to check out alternatives, said multiple sources.
Nikkei reported in June, Apple was planning to shift its 15 - 30 percent smartphone production from China to Southeast Asia.

Source: https://www.reuters.com/article/us-china-strategy-tech/hp-dell-other-tech-firms-plan-to-shift-production-out-of-china-nikkei-idUSKCN1TY14G

Dell , HP , Trade-war , Notebook , Laptop , China , America , Tech