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On October 28, 2026, Phoenix Technology reported that 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. The report noted that the move is in response to memory and storage component shortages and rising bill-of-materials costs caused by AI demand. The same report also said Dell is evaluating similar adjustments; semiconductor industry executives said that if the cost environment does not improve, PC makers may move more production back to China. There are currently no subsequent developments or facts.
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AI Drives Up Memory Costs, HP and Other Major PC Makers Shift Some Production Back to ChinaDevelopments
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- Source:Phoenix Technology
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Oct 28
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AI Drives Up Memory Costs, HP and Other Major PC Makers Shift Some Production Back to China
Amid a severe shortage of memory and storage components caused by AI demand and rising bill-of-materials costs, PC manufacturers such as HP are moving some production back to China and turning to more competitively priced Chinese contract manufacturers. Dell, the world's third-largest PC maker, is also evaluating similar adjustments, while Acer says it will dynamically adjust its supply chain. Chip industry executives say that if the cost environment does not improve, PC makers may further shift production back to China.
Phoenix Tech
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.