China’s dominance in tech supply chains is waning, according to TrendForce. Rising labor costs and geopolitical concerns are driving tech companies to relocate production, particularly to Southeast Asia and South Asia.
HP is reportedly considering moving over half of its PC production from China to Thailand and Vietnam, aiming to reduce its reliance on China and lower costs.
Apple, long dependent on China, is accelerating its supply chain diversification. It has assembled $14 billion worth of iPhones in India since April, and estimates suggest 25% of iPhones will be made there by 2028. iPad production has shifted to Vietnam, and MacBook production is partially relocated to Vietnam. Thailand remains a potential future production site.
Google has moved Pixel smartphone production to Vietnam and India, driven by U.S.-China tensions and India’s market potential. Initial production in Vietnam faced challenges, prompting expansion into India.
Samsung, already producing Galaxy smartphones in Vietnam, has expanded production in India. It also plans to increase television and home appliance production in India.
Dell is gradually shifting some laptop production from China to India, though the transition is ongoing.
Thousands of senior engineers and procurement professionals subscribe to our LinkedIn Market Intel newsletter – get yours here
For more help with looking at supply chain options, contact Astute Electronics
