HP, Dell, Other Tech Firms Plan to Shift Production out of China: Nikkei

The Hewlett-Packard (HP) logo is seen as part of a display at the Microsoft Ignite technology conference in Chicago, Illinois, on May 4, 2015. Jim Young/Reuters

Several major U.S.-based technology companies are planning to shift substantial production out of China, spurred by a bitter trade war between Washington and Beijing, the Nikkei reported on Wednesday, citing sources.

Personal computer makers HP Inc and Dell Technologies are planning to reallocate up to 30 percent of their notebook production out of China, according to the Nikkei.

Microsoft Corp, Alphabet Inc, Amazon.com Inc, Sony Corp, and Nintendo Co Ltd, are also looking at moving some of their game console and smart speaker manufacturing out of the country, the Nikkei added.

U.S. President Donald Trump and Chinese President Xi Jinping struck a truce at last weekend’s G-20 Summit in Japan, paving the way for a restart in trade talks after months of stalemate.

However, the companies are not likely to alter their plans of moving some of their production out of China as they also face higher operating costs in the country.

Apple CEO Tim Cook speaks at the Apple Worldwide Developers Conference in San Jose, Calif., on June 3, 2019. AP Photo/Jeff Chiu

In June, Apple Inc asked its major suppliers to assess the cost implications of moving 15 percent-30 percent of their production capacity from China to Southeast Asia as it prepares for a restructuring of its supply chain, Nikkei had reported last month.

HP, Dell, Amazon, Microsoft, and Google did not immediately respond to a Reuters’ request for comment.

By Bhargav Acharya and Sayanti Chakraborty