HP is working with its suppliers to shift production of millions of consumer and commercial laptops to Thailand and Mexico this year, marking a significant first step towards diversifying its personal computer supply chain beyond China. HP plans to shift some commercial notebook computer production to Mexico, while a portion of its consumer laptop production will go to Thailand. HP is also planning to shift some laptop production to Vietnam starting next year. The output outside of China this year will be a couple of million to 5 million units.
HP’s move echoes similar strategic decisions by other tech giants like Dell and Apple. Dell plans to manufacture at least 20% of all its laptops in Vietnam this year and aims to completely walk away from ‘Made in China’ chips by the end of 2024. Apple will begin to assemble MacBooks in Vietnam this year, marking the first time their laptops will be made outside of China.
The choice of Thailand and Mexico for HP’s production shift is strategic, as Mexico’s proximity to HP’s main market, the United States, makes it an attractive option. Thailand, already home to a number of PC suppliers, offers a ready-made ecosystem for HP to tap into. This shift in production is not just about decoupling from China but also about cost-effectiveness and proximity to key markets.
Source: SupplyChains
