What you need to know
- Microsoft, Amazon, HP, and Dell are looking to move some hardware manufacturing out of China.
- HP and Dell could move up to 30 percent of their laptop production out of China.
- Dell has reportedly started a "pilot run" of producing notebooks in Taiwan.
Microsoft, Amazon, HP, and Dell are the latest tech giants to consider moving some of their hardware production out of China. Nikkei reports that HP and Dell are looking to move up to 30 percent of their laptop production out of China. Dell has also started a "pilot run" of producing notebooks in Taiwan according to Nikkei's report.
These potential moves are in response to the ongoing trade war between the United States and China. A 25 percent tariff was placed on $200 billion worth of goods, and tensions have been high. Tariffs could result in the prices of laptops and gaming consoles increasing. The trade war as a whole has already had an impact on the technology industry. Chinese tech company Huawei has been in the headlines frequently as a result of the trade war and now US companies are in the news as well.
Microsoft, Amazon, HP, and Dell are not the only tech giants to consider moving at least some of their manufacturing from China. The Wall Street Journal reported Nintendo moved some Switch production and Bloomberg reported that Google is moving some of the production of Nest products.
Dell and HP are two of the largest three PC makers on Earth. Combined with similar moves to move manufacturing from Microsoft, Amazon, Google, and Nintendo, the effects of the trade war will be far-reaching in the tech industry.
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Sean Endicott brings nearly a decade of experience covering Microsoft and Windows news to Windows Central. He joined our team in 2017 as an app reviewer and now heads up our day-to-day news coverage. If you have a news tip or an app to review, hit him up at firstname.lastname@example.org (opens in new tab).
except apple... of course
There are also reports that Apple will be moving production as well.
move to southeast asian countries. all that US Money could be used in Taiwan, Vietnam, Singapore, Philippines, Malaysia, Thailand, Cambodia,
Since the latest trend is shaming corporations, perhaps we should jump on the bandwagon and shame any corporation that moves jobs out of the USA.
We basically have 2 choices.
(1) Have products available that are cheaply priced but have no income/job to purchase said products. Draw on taxpayer dollars.
(2) Have products available that are moderately priced and have income with which to purchase said products. Contribute to taxpayer dollars.
Putting aside the fact that your dichotomy is completely untrue, we're talking about assembly jobs here. No number of assembly jobs "returning" to the US is going to raise people's incomes or even employment. Most of the value in these devices is from rich countries, including the US. There's a reason putting valuable US/Japanese/Australian-designed components together in an assembly line is the kind of thing poor countries do and rich countries don't.
This could be good. Having your production capacity dependent on one country subject to the political whims of whatever party or dictator is in power is risky. Spreading it out over multiple countries minimizes the political power such countries have over us should they decide to take actions that are economically harmful. Manufacturing isn't moving back to the U.S. anytime soon, but we can take steps to ensure our control over the production pipeline as much as possible.
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