Key facts
- HP, Asus and Acer are reportedly shifting some PC manufacturing back to China from Thailand and Vietnam, per Nikkei Asia.
- Component costs for mainstream PCs priced at $500 to $699 rose from $435 to $699 between early 2025 and Q3 2026, per Omdia figures cited by Nikkei Asia.
- LuxPC Union, a Luxshare and Sixunited Group venture, won orders from HP, Asus and Dell over the past year, sources told Nikkei Asia.
- Dell is evaluating a similar production shift, according to the report.
- Acer said it dynamically adapts its supply chain operations to strengthen resilience and maintain competitiveness.
- HP, Dell and Asus did not respond to Nikkei Asia's requests for comment.
HP, Asus and Acer are reportedly moving some PC manufacturing back to China from Thailand and Vietnam, according to a Nikkei Asia report. Rising component costs are pressuring their PC businesses, and China's experienced workforce, established supplier network and competitive manufacturing prices are drawing orders back.
Demand for artificial intelligence infrastructure has created shortages of memory and storage components. According to Omdia figures cited by Nikkei Asia, the component bill for mainstream PCs priced at $500 to $699 rose from $435 to $699 between early 2025 and the third quarter of 2026. "The move is really driven by cost pressures," a chip industry executive whose company supplies major PC makers told Nikkei Asia.
Smaller Chinese contract manufacturers also offer access to locally made memory chips as larger Taiwanese rivals increasingly focus on AI servers. Chinese companies such as Luxshare, Huaqin Technology and Longcheer Technology are seeking more PC business. LuxPC Union, a venture established by Luxshare and Sixunited Group, has won orders from HP, Asus and Dell over the past year, sources told Nikkei Asia. Dell is also evaluating a similar shift, the report said.
Established contract manufacturers including Quanta Computer, Compal Electronics, Inventec and Foxconn are increasingly pursuing AI data center server orders, which offer greater revenue and growth opportunities. Some PC brands are giving contractors more responsibility for buying processors, memory and other components; Acer has adopted this approach to reduce its internal procurement workload, according to executives cited in the report.
The move partially reverses the industry's China+1 strategy of keeping manufacturing in China while adding capacity elsewhere. Dell had pushed suppliers to move production to Vietnam and avoid Chinese-made components, and HP later set a target to move up to 70% of production outside China. Supply chain executives said Southeast Asia will remain important for long-term manufacturing resilience, though reduced orders are creating uncertainty for smaller suppliers there, including a keyboard component supplier whose two new production lines in Thailand have yet to turn profitable.
HP, Dell and Asus did not respond to Nikkei Asia's requests for comment. Acer said: "We dynamically adapt our supply chain operations to strengthen resilience and maintain competitiveness. Our strategy to work with multiple manufacturers and suppliers, and to stay dynamic, has been consistent over the years."