Following other prominent tech companies, HP, the second largest PC manufacturer globally, plans to diversify its production line from China to Mexico and Thailand this year.
HP aims to produce several million units in these regions, compared to 55.2 million units shipped worldwide the previous year.
The company is also considering beginning production in Vietnam next year.
This decision is part of a broader trend among American tech firms seeking to broaden their supply chains in the face of geopolitical uncertainties.
Before HP, Dell and Apple initiated similar strategies, with the former aiming to manufacture 20% of its laptops in Vietnam this year and the latter starting MacBook production in Vietnam.
While Thailand already has several PC suppliers that could expedite HP’s transition, establishing production in Mexico would improve service to the company’s primary North American market.
However, HP maintains that China remains essential to its global supply chain.
The company has long supported electronics manufacturing in China, particularly in Chongqing, now a leading hub for laptop production and PC exports.
According to industry analysts, supply chain diversification aims to reduce the risk associated with U.S.-China tensions and benefit from emerging production hubs in Southeast Asia.
This shift is unlikely to affect American PC manufacturers’ market share in China but could impact bids related to government and public education sectors.