HP, Asus, and Acer are partially relocating PC production back to China to cope with rising costs due to AI demand

PC manufacturers such as HP, Asus, and Acer are moving some production capacity back to China from Thailand and Vietnam due to memory chip shortages and rising material costs driven by AI demand, and are cooperating with Chinese contract manufacturers like Luxshare Precision. Chinese contract manufacturers offer strong competitiveness in pricing and can access domestically produced memory chips, remaining the optimal choice for computer production. Dell, the third-ranked US PC manufacturer, is also evaluating similar plans.