Laptop ODMs moving out of China to avoid tariffs

Posted on Tuesday, Nov 13 2018 @ 09:45 CET by Thomas De Maesschalck
The import tariffs levied by the Trump administration are causing a big shift in the supply chain of computer parts. Since September 24, the US hit China with a 10 percent tariff on about $200 billion worth of goods. This rate is set to increase to 25 percent at the end of this year.

Servers and desktop PCs are included on the list, while laptops, All-in-One PCs, smartphones, and wearables are excluded. Fearing further tariffs may be incoming, US notebook and AiO PC brands have requested their downstream assemblers to diversify their production. DigiTimes heard it will take 1-2 years for production relocation by supply chain partners.

Pegatron for example is looking to establish a new production base in Southeast Asia, possibly in Indonesia. Here's a brief look at what some of the other major ODMs will do:
Following intensive evaluation, Compal has decided to reactivate its notebook assembly capacity at its plant in Vietnam while also expanding notebook docking capacity at its plant in Taoyuan, northern Taiwan.

After kicking off production of servers recently at its existing plant in New Taipei City, Quanta Computer is actively looking for a new plant location, probably in the Hwa Ya Technology Park, also in Taoyuan, to house notebook production lines, the sources said.

Wistron maintains production bases in Hsinchu Science Park (HSP) in northern Taiwan, the Philippines and Mexico. Now with Mexico facilities focusing on production of servers, the company is moving to install new notebook production lines at its plants in Taiwan and the Philippines, the sources said.

Inventec will expand its server production capacity at its production base in Taoyuan and may adjust the capacity to support expanded notebook production if needed, the sources said.
Via: DigiTimes

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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