HP is looking to withdraw a significant portion of its laptop manufacturing operations from China and shift them to Thailand, Mexico, and Vietnam.
According to insider sources cited by Nikkei, this is just one of the measures being taken by HP in its goal to diversify production and reduce reliance on China due to issues related to Covid-19 restrictions and geopolitical concerns.
HP is the second-largest PC manufacturer in the world
Furthermore, HP’s management has also assessed the rising production costs in China, labor recruitment challenges, and increasing wage expenses. Therefore, they need to relocate at least some of their production to other countries with lower costs and less vulnerability to geopolitical issues.
HP plans to move some of its business laptop product manufacturing to Mexico, while consumer market products will be produced in Thailand. Additionally, they intend to shift another portion of production to Vietnam starting in 2024. Even this year, HP’s PC production outside of China could reach 5 million units, a significant figure when considering the global PC sales estimate for 2023 of approximately 55 million units.
Thailand has a strong infrastructure in terms of PC suppliers, which is expected to facilitate HP’s transition. Regarding HP’s future equipment manufacturing in Mexico, it aligns with the company’s strategy to provide better services to its main market, North America.
This doesn’t mean HP will cease manufacturing activities in China, as the company has made significant investments in manufacturing plants there. However, similar to what companies like Dell and Apple have done, shifting some production to countries like Vietnam will help them reduce their dependence on China for assembly in the future.
@Thanhnien.vn