Several major US tech companies are in plan to shift the majority of their production from China after a fierce trade war between Washington and Beijing, the Nikkei said on Wednesday and quoted sources.
Personal computer makers HP Inc. and Dell Technologies plan to reallocate up to 30% of their notebook production in China, according to the Nikkei.
Microsoft, Sony Corp., Alphabet Inc., Nintendo Co. Ltd., and Amazon.com Inc., are also considering moving part of their video game console and its smart speakers’ manufacturing, added the Nikkei.
Chinese President Xi Jinping and the US President Donald Trump signed a ceasefire last week at the G20 summit in Japan, paving the way for a resumption of trade talks after months of deadlock. However, companies are unlikely to change their plans to shift their production from China, as they will also face higher operating costs in the country.
Apple Inc. declared in the last month that its major suppliers estimate the cost of moving 15% to 30% of its production capacity from China to Southeast Asia during the restructuring of its supply chain. HP, Dell, Amazon, Google, and Microsoft did not instantly respond to request for comment.
Some of the world’s leading brands of gaming consoles and computers have decided to shift production, mainly to US-based products, as a result of production reviews of other technology companies. Apple is currently investigating the cost of moving 30% of smartphone production, the Nikkei said last month. Elsewhere, server manufacturers, network products and some major electronics are leaving China, often at the request of their American customers.
China’s total imports and exports in the electronics sector grew 136-fold, from just over $10 Billion in 1991 to $1.35 Trillion in 2017, according to the Chinese data provider, QianZhan.