AI-driven chip shortages push HP, Asus, Acer to shift PC production back to China
HP, Asus, and Acer are reportedly relocating some PC manufacturing back to China due to soaring component costs, primarily driven by AI demand. Memory and storage chip prices surged 500% in 12 months, while PCBs and fiberglass cloth also saw price hikes, according to Nikkei Asia. The companies are avoiding traditional suppliers like Foxconn, instead partnering with smaller Chinese contract…
Key points
- HP, Asus, and Acer reportedly moving PC production back to China due to AI-driven chip shortages
- Memory and storage chip prices rose **500%** in 12 months, per Nikkei Asia
- Smaller Chinese contract manufacturers now preferred over Foxconn for domestic chip access
The shift reverses earlier moves in 2024–2025, when these brands relocated production to avoid U.S. tariffs and sanctions. While China’s mature workforce and lower costs offset rising expenses, it strains newly built supply chains in Southeast Asia, where production lines remain unprofitable. Acer’s CEO Jason Chen criticized suppliers for exaggerating shortages to protect margins. The move highlights the tension between cost efficiency and geopolitical risk in global manufacturing.
AI component hikes force the world's largest PC makers to return manufacturing capacity to China
Tom's Hardware · 28 October 2026
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