Global consumer electronics makers HP, Dell, Microsoft and Amazon are all looking to shift substantial production capacity out of China, joining a growing exodus that threatens to undermine the country’s position as the world’s powerhouse for tech gadgets, reported Nikkei Asian Review.
HP and Dell, the world’s No. 1 and No. 3 personal computer manufacturers who together command around 40% of the global market, are planning to relocate up to 30% of their notebook production out of China. Microsoft, Google, Amazon, Sony and Nintendo are also looking at moving some of their gaming console and smart speaker manufacturing out of the country. Other leading PC makers such as Lenovo Group, Acer and Asustek Computer are also evaluating plans to shift, said Nikkei Asian Review sources.
Tech companies’ plans, spurred by the bitter trade battle between Washington and Beijing, have not changed despite the truce that was struck between US President Donald Trump and Chinese President Xi Jinping at last weekend’s Group of 20 summit in Osaka. Multiple sources said the situation was still too uncertain, while rising costs in China were also prompting manufacturers to examine alternatives.