LG has reportedly chosen to outsource the production of its LG Gram series to a Chinese PC manufacturer, rather than in-house production in South Korea.

A recent report claims the upcoming Gram models will be produced by Quanta’s subsidiary Dafeng, a Chinese manufacturer that previously made other LG products.

The company will also be responsible for making mid-range Ultra PC models, and the Gram 2-in-1 notebooks.

An insider revealed the base LG Gram was manufactured in-house at LG’s Nanjing, China site before outsourcing.

The source added cost reduction and improved efficiency is likely the reasoning behind the shift. Recently, the Nanjing plant faced a loss of 2.4 billion won (approx. A$2.7 million) in the third quarter of this year. In the recent financial report, LG’s unit that sells laptops and IT products, suffered a 20.5 billion won loss.

LG believed slowing demand for falling IT products was the main reason behind the decline. The LG Gram 2023 series was released in June in India. The LG Gram SuperSlim OLED was also launched this year, as the thinnest laptop from the brand with an OLED panel.