PC brands reportedly return some assembly to China amid component cost squeeze

HP and Asus are reportedly shifting some PC manufacturing from Thailand and Vietnam back to China as rising component costs put pressure on hardware margins. Acer is also rebalancing production, while Dell is said to be considering a similar step.

That is according to TechRadar’s November 4 report, which cites Nikkei Asia reporting based on unnamed industry sources. The changes partly reverse efforts to diversify manufacturing beyond China.

Component bills reshape assembly decisions

The financial pressure extends beyond factory labor. According to TrendForce figures cited in the report, processors, DRAM and SSDs represented roughly 68% of a mainstream notebook’s bill of materials in the third quarter of 2026, compared with about 45% in the first quarter of 2025.

Chinese contract manufacturers are reportedly offering lower prices, access to Chinese-made memory and waived engineering and tooling fees to attract orders. Companies including Luxshare, Huaqin Technology and Longcheer Technology are competing for PC work as established manufacturing partners devote more capacity to AI servers.

TechRadar also reports that HP, Asus and Acer qualified DRAM from Chinese supplier CXMT around mid-2026. Small volumes have begun appearing in selected notebooks sold outside the United States.

Lower production costs may not mean cheaper PCs

TrendForce estimates that notebooks manufactured outside China will account for 21% of global production in 2026, down from approximately 24% in 2025. Its forecast suggests that share could fall below 20% in 2027.

For PC buyers, the distinction is between manufacturers reducing expenses and retailers reducing prices. The reporting establishes no resulting consumer price cuts. It also leaves the destination of the returning production unclear, so it does not establish whether US-bound machines are involved.