A number of tech companies are looking to move some of their hardware production out of China. This is motivated by the ongoing trade war with the US, which sees the latter put a 25% tariff on US$200 billion (~RM826.84 billion) worth of goods.
Sources to Nikkei say that HP and Dell are moving up to 30% of their notebook productions out of China. Lenovo, Acer and ASUS are also thinking about doing the same, according to the report. The same goes to Microsoft, Sony, Nintendo, Google and Amazon for their consoles and other devices.
It was only last month that Apple was reported to be contemplating moving up to 30% of its manufacturing outside of China. Now, these other companies are following suit, and have seemingly also picked Southeast Asian countries as their manufacturing hubs.
While the tariffs are a major reason for the move out of China, production costs in the country have also been reportedly on the rise. These two combined may end up making manufacturing in China more expensive than erecting a new factory elsewhere.