Shift in global PC supply chain: South-East Asia gains momentum

As global trade dynamics shift, the PC industry is rethinking its manufacturing strategy. With rising tariff pressures and the need for greater supply chain resilience, South-East Asia is emerging as a key production base particularly for U.S.-bound models. This blog from Linda Lin explores how leading PC brands are responding, what’s driving the shift, and what it means for the future of the global supply chain.

Global PC supply chain dynamics are evolving, with production activity increasingly shifting toward South-East Asia. Historically, over 80% of the world’s PC units have been manufactured in China due to its mature and comprehensive supply chain. However, recent trade developments have introduced new considerations for OEMs and PC brands looking to manage cost and operational risks.

Following the inauguration of the new U.S. administration in February 2025, a series of tariff policy announcements have impacted global trade flows, particularly between the U.S. and China. In April 2025, the U.S. proposed increasing tariffs on Chinese goods from 11.4% to 145%, while China responded with tariffs of up to 125% on U.S. imports. These announcements prompted concern across international markets. A positive development followed, however, with both countries agreeing to a 90-day exemption period, allowing time for further negotiations. During this period, announced tariffs were revised down to 30% from the U.S. and 10% from China.

To mitigate potential cost increases associated with future tariff risks, major U.S.-based PC brands have already begun diversifying their manufacturing footprint. Dell and HP started relocating portions of their production outside of China as early as 2023, followed by Apple and Microsoft, who began OEM production in Vietnam in 2024. As a result, the region, is becoming a key hub for PC assembly, especially for devices destined for the North American market.

According to recent data from Omdia’s latest Tablet and Notebook Display & OEM intelligence service, the top four global PC brands are expected to reduce their OEM orders from China while increasing production capacity in South-East Asia. The region’s share of global PC OEM output is projected to grow from an average of 15% in 2024 to between 25% and 30% in 2025. This reflects an ongoing effort by brands to diversify geographically and manage business continuity more effectively.

Looking ahead, the PC supply chain may continue to bifurcate as production in China is likely to remain focused on non-U.S. markets, while South-East Asia emerges as the primary production base for North America-bound models. Despite this momentum, South-East Asia’s PC manufacturing ecosystem is still developing. The region continues to rely on China for component exports, and shipping costs for these materials remain a factor. Although labor costs in South-East Asia are relatively low, the total manufacturing cost - considering logistics and infrastructure - remains higher than China’s in the short term.

As a result, brands are initially prioritizing the transfer of lower-end, price-sensitive PC models to new production sites in the region. Over time, with increased investment and capacity development, the share of mid- and high-end models produced in South-East Asia is expected to grow.

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