HP, Asus and Acer reportedly move some PC production back to China

HP, Asus and Acer have moved some manufacturing capacity back to China as rising component costs squeeze margins, Tom's Hardware reports, citing Nikkei Asia. The brands are contracting with smaller manufacturers including Luxshare, Huaqin Technology and Longcheer Technology as traditional suppliers focus capacity on AI data centers. China's established supply chains and workforce help offset component costs, while local manufacturers advertise access to Chinese-made memory. The shift is drawing orders away from Southeast Asia: one supplier said two new production lines in Thailand had yet to become profitable. The PC brands are retaining their broader geographic diversification strategies.