Nikkei carries the report.
The moves are being prompted by uncertainties over the eventual outcome of the Trump-initiated trade war with China, with 25% tariffs on all goods imported into the US from China still a possibility.
HP and Dell, the world’s No. 1 and No. 3 personal computer makers who together command around 40% of the global market, are planning to reallocate up to 30% of their notebook production out of China, several sources told the Nikkei Asian Review.
Foxconn confirmed earlier this year that it is beginning mass-production of iPhones in India later this year, also suggesting that all iPhones created for sale in the US could be made outside China. A recent report suggested that Apple’s goal could be to move as much as 15-30% of its production out of the country within the next three years.
As we’ve said before, the feasibility of that scale of a move in such a relatively short timeframe is doubtful, but some kind of shift does make sense.
Nikkei goes on to suggest that rising production costs in China are also a factor in the desire to shift some production out of China.
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Even if Washington and Beijing resolve their long-running dispute, the shifts mean that China will face growing competition as an electronics production base, say experts. “There is no turning back, and it is not only about tariffs but also about reducing risks for the long term [such as rising labor costs],” said TIER’s Chiu. “Southeast Asian countries and India will together become new competitive hubs in coming years for electronics production,” the economist said.
