AI Pushes Up Memory Costs, HP, ASUS, and Acer Move Some PC Production Back to China
Major PC manufacturers such as HP, ASUS, and Acer are moving some production from Thailand and Vietnam back to China and shifting to lesser-known Chinese contract manufacturers, in order to cope with shortages of memory and storage components and rising bill-of-materials costs caused by AI demand. Dell is also evaluating similar adjustments. Chip industry executives say that if the cost environment does not improve, PC makers may move more production back to China.
Body · AI translation
AI Pushes Up Memory and Other Costs; HP and Other Major PC Makers Said to Move Some Production Back to China
Phoenix Tech Download the App for Exclusive Early Access October 28, 2026, 10:38:11 From Beijing
HP and other companies are moving production back to China
Phoenix Tech News, October 28 (Beijing Time) — According to Nikkei Asia, major PC manufacturers including HP, Asus, and Acer are responding to soaring component costs by moving some production from Thailand and Vietnam back to China and turning to a new generation of contract manufacturers.
Multiple people familiar with the matter told Nikkei Asia that, as bill-of-materials costs rise and AI demand causes severe shortages of memory and storage components, these PC makers are seeking greater manufacturing efficiency. China remains the best choice for PC makers to manufacture computers because it has an experienced workforce, lower prices, and a complete supply chain ecosystem that can provide comprehensive component supply channels.
At the same time, these PC makers are switching to some lesser-known Chinese contract manufacturers, because larger contract manufacturers are increasingly busy producing higher-margin AI data center server orders. People familiar with the matter said Dell, the world's third-largest personal computer maker after Lenovo and HP, is also evaluating similar adjustments.
"This move is indeed driven by cost pressure," said a chip industry executive whose company supplies all major PC manufacturers. "Not only memory chips, but prices of other components are also rising so rapidly that it is increasingly difficult for PC makers to absorb these increases. They are moving some production back to China and working with more Chinese contract manufacturers, mainly because the latter can offer highly competitive prices."
The executive said that if the cost environment does not improve, PC makers may move more production back to China.
An Acer spokesperson said: "We dynamically adjust supply chain operations to enhance supply chain resilience and remain competitive. We have always worked with multiple manufacturers and suppliers and maintained a flexible adjustment strategy, and have done so for many years."
As of publication, HP, Dell, and Asus had not commented. Author/Xiao Yu)
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