Tech Giants Are Shifting Production From China; Bitter Trade War Spur between Washington & Beijing
The global consumer electronics makers Dell, HP, Microsoft and Amazon are all looking to shift their substantial production capacity, outside of China, and decided to join a growing migration that threatens to undermine the country’s position, as the world’s powerhouse for the tech gadgets. Apple Inc has also asked its major suppliers in June, to assess the cost implications of moving 15% to 30% of their production capacity, from China to Southeast Asia.
World’s No. 1 and No. 3 personal computer makers, HP and Dell respectively, who together grasping around 40% of the global market, both are planning to re-allocate up to 30% of their notebook production, out of China, the report was confirmed by several sources told the Nikkei Asian Review.
Sony Corp, Microsoft Corp, Google, Nintendo and Amazon are also looking at moving some of their game console, and also the smart speaker manufacturing out of China, the news was confirmed by the multiple sources told the Nikkei Asian Review. It’s going to happen among other leading PC makers such as Acer, Asustek Computer and Lenovo Group are also evaluating the plans to shift, according to the people familiar with matter.
The ongoing trade war between U.S and China have not yet resolved despite the recent meeting of U.S. President Donald Trump and Chinese President Xi Jinping in last weekend’s Group of 20 summit, in Osaka, and that uncertainty and rising costs in China, were also prompting the big and small manufacturers to examine alternatives.