Big PC Brands Move To Dump China Made SE Asia The New Manufacturing Hub
As consumers in markets such as the USA, Australia, India, and Europe stop Buying Chinese made products big notebook and PC brands are switch to Countries other than China according to new research.
According to the Market Intelligence & Consulting Institute (MIC) Southeast Asia will produce half of the world’s notebook personal computers in 2030, with both Vietnam and Thailand pegged as main manufacturing hubs.
Brands such as Dell have already switched their operations out of China.
The region will displace China as the centre of notebook PC production, due to protests against China and China’s rising labor costs and the desire to mitigate overdependence on a single region are expected to drive the shift to Southeast Asia.
The global notebook PC market stood at 160 million units last year. China is responsible for 90% of the output, with most of its manufacturing overseen by Taiwanese companies, while Southeast Asia handles just a slim fraction of the production.
Interviews with management at key manufacturers revealed that China’s share of notebook PC production will be scaled from 90% to 40% by 2030. Major Taiwanese contract manufacturer Wistron, for example, will produce notebook PCs on behalf of U.S. brands in Vietnam.
Among other Taiwanese peers, Compal Electronics is considering building output capacity in Vietnam, while Quanta Computer, the world’s third-largest contract manufacturer, is expected to produce notebook PCs in Thailand.
Hon Hai Precision Industry, known as Foxconn and the world’s biggest contract electronic manufacturer, may launch notebook PC production in Vietnam.
Notebook PC deliveries are expected to climb 6% this year to 170 million units. The coronavirus pandemic has fuelled the rise in telecommuting and distance learning, and lifted demand for Chromebooks, which run on Google’s operating system.
China’s Lenovo Group, HP in the U.S. and Taiwan’s Asustek Computer have released their own Chromebooks, which sell for a few hundred dollars. Most of those models are produced on contract by Taiwanese firms.