HP and ASUS Move PC Assembly to China as AI Part Costs Mount
Rising memory prices and server bottlenecks push electronics brands back toward mainland manufacturing clusters after years of China-plus-one diversification across Southeast Asia.
HP and ASUSTeK Computer began moving selected laptop assembly lines from Vietnam and Thailand back to mainland China on Oct. 27, 2026, reversing multiyear diversification efforts as component costs escalated.
The relocation follows a 30.9% drop in HP third-quarter personal computer shipments reported by market research firm IDC. Surging component bills for artificial intelligence hardware squeezed personal computer profit margins across the industry.
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