HP and ASUS are moving some PC production from Thailand and Vietnam back to China as higher costs for memory, storage and other components squeeze manufacturers’ margins. Acer is also adjusting its production mix, while Dell is reportedly considering a similar shift, according to a report by Nikkei Asia citing unnamed industry sources.
The cost pressure is reflected in laptop component bills. TrendForce estimates processors, DRAM and SSDs made up around 68% of the bill of materials for a mainstream notebook in the third quarter of 2026, compared with about 45% in the first quarter of 2025. With key components taking a larger share of production costs, companies are looking for savings in manufacturing and supply chains.
The shift reverses part of the industry’s move to diversify production beyond China. HP had previously planned to move a significant share of its laptop manufacturing out of the country, and Asus said in August 2025 that it had transferred more than 90% of its US-bound motherboard and PC production to Thailand, Vietnam and Indonesia.
Chinese contract manufacturers, including Luxshare, Huaqin Technology and Longcheer Technology, are seeking the new business with lower prices. They are also promoting access to Chinese-made memory and, according to TrendForce, waiving some engineering and tooling fees to attract orders. HP, Asus and Acer qualified DRAM from China’s CXMT around the middle of 2026 and have begun shipping it in small volumes in some notebooks sold outside the United States.
The returning orders are not necessarily going to the PC industry’s traditional manufacturing partners. Quanta, Compal, Inventec and Foxconn are directing capacity toward AI servers, which offer higher margins. This has created an opening for Chinese assemblers as PC brands look for alternatives and negotiate costs with suppliers.
TrendForce forecasts that the share of global notebook production outside China will decline from about 24% in 2025 to 21% in 2026, potentially falling below 20% in 2027. The available reporting does not specify where the China-made computers will be sold, so it remains unclear how production will be divided by destination.
The shift has also affected suppliers that expanded in Southeast Asia to serve PC makers. One component supplier manager told Nikkei that two new production lines opened in Thailand for PC orders have yet to become profitable after substantial orders moved back to China. Despite the manufacturing changes, the report does not indicate that consumers should expect lower PC prices as a result.
Sources: TechRadar.