HP Shifts Computer Production to Southeast Asia Amid Global Uncertainty
August 7, 2024
By WEB LAULY LI and CHENG TING-FANG, Nikkei Asia Tech Correspondents
Amidst growing global geopolitical uncertainty, HP Inc. has announced plans to move over 50% of its computer production away from China and into Southeast Asia. This strategic shift comes as the company looks to mitigate risks associated with supply chain disruptions and political tensions.
According to Nikkei Asia's report on August 7, HP is reportedly establishing a design hub in Singapore and hiring engineers to support the relocation of its production facilities. The company's decision is also influenced by the rising cost of manufacturing in China, as well as the increasing demand for electronic devices in Southeast Asia.
This move aligns with HP's broader strategy to diversify its supply chain and reduce its reliance on China. The company has previously stated its intention to expand its manufacturing footprint in Vietnam, Malaysia, and other Southeast Asian countries. This shift is expected to strengthen HP's ability to meet customer demand while minimizing potential disruptions.
The decision by HP to move its computer production to Southeast Asia is indicative of a broader trend among technology companies. Many multinational corporations are seeking to reduce their exposure to geopolitical risks by diversifying their manufacturing bases and supply chains. This trend is likely to continue as global uncertainty persists.
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