# 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.*

**Published:** October 29, 2026  
**By:** Mina Okoro  
**Section:** Analysis & Comparison — Cross-border  
**Format:** Why It Matters  
**Confidence:** medium  
**Source:** https://eastasiabrief.com/analysis/hp-asus-move-pc-assembly-china-ai-part-costs-981  
**Publisher:** East Asia Brief (https://eastasiabrief.com/)

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## What to know

- HP and ASUS moved PC assembly lines back to China on Oct. 27, 2026 to curb AI memory costs
- HP saw shipments fall 30.9% in Q3 as rising bills of materials compressed laptop margins
- PC hardware makers report quarterly earnings in late November 2026

![Workers assemble laptop computers on an electronics manufacturing line as personal computer makers adjust assembly operations. (AI-generated image)](https://eastasiabrief.com/media/2026-10-28-6ead9fb1b9eb.webp)
*Workers assemble laptop computers on an electronics manufacturing line as personal computer makers adjust assembly operations. (AI-generated image)*

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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Cite as: East Asia Brief, "HP and ASUS Move PC Assembly to China as AI Part Costs Mount," October 29, 2026. https://eastasiabrief.com/analysis/hp-asus-move-pc-assembly-china-ai-part-costs-981