HP and Asus are moving PC production back to China as soaring component costs force a rethink

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What we know so far: When US-China trade relations reached an all-time low last year, many global electronics manufacturers made a beeline for alternative low-cost manufacturing locations such as Thailand, Vietnam, and India. However, with skyrocketing component costs squeezing profit margins, some of these companies are reportedly shifting at least part of their PC manufacturing operations back to China.

According to Nikkei Asia, American PC giant HP and Taiwanese consumer electronics firm Asus have already moved some of their manufacturing operations back to China. Another leading PC OEM, Dell, is also said to be evaluating whether to follow suit and shift some of its PC production back to the Asian nation to offset rising component costs.

The renewed preference for China as a PC manufacturing hub underscores broader, systemic pressures gripping the...

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