HP to Move Production to Mexico and Thailand

HP to Move Production to Mexico and Thailand

According to NikkeiAsia, HP is working with suppliers to shift production of millions of consumer and commercial laptops to Thailand and Mexico this year, in the top U.S. computer maker’s first substantial move to diversify its personal computer supply chain beyond China.

China’s Lenovo is the number one PC maker in the world, in terms of shipments. However, HP—the world’s number two—will shift some commercial notebook computer production to Mexico. At the same time, its consumer laptop production will go to Thailand.

“The output outside of China this year will be a couple of million to 5 million units, they said. HP shipped 55.2 million PCs worldwide last year, Canalys’ data showed.”

HP released a statement on its website on Monday, the same day Nikkei Asia approached the company for comment, saying it is expanding existing operations in Southeast Asia and elsewhere and has been “adding incremental notebook PC production” in Mexico.

HP did respond to questions from NikkeiAsia and stated, “China is a very important part of our global supply chain and we remain deeply committed to our operations in Chongqing.”

“HP wants to stay low-key about its plans to shift outside of China. Apart from geopolitical concerns, it also takes into account China’s continued rising manufacturing costs, including challenges in recruiting labor and the increasing labor costs,” said an executive at an HP supplier.

Apple, meanwhile, began making MacBooks in Vietnam this year, the first time its laptops were made outside China, fulfilling plans that Nikkei reported in late 2022.

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