Citing a source close to the matter, Nikkei said that this is just one of the measures taken by HP in its goal of diversifying production to avoid dependence on China following problems caused by the Covid-19 pandemic and geopolitics .
HP is the world's second largest PC manufacturer.
Not only that, HP's management has also assessed the rising cost of manufacturing in China, the problems with recruiting personnel and increasing wage costs. Therefore, they need to move at least some of their production to other countries with lower costs and less affected by geopolitical issues.
HP plans to move some of its business laptops to Mexico, while consumer products will be made in Thailand. It will also move some production to Vietnam starting in 2024. HP’s PC production outside of China could reach 5 million units this year, a significant number considering global PC sales in 2023 are expected to be around 55 million units.
Thailand has a fairly strong infrastructure of PC suppliers, which is expected to facilitate HP's transition. As for future HP equipment manufacturing in Mexico, this fits with the company's strategy of providing better service to its main market of North America.
This doesn’t mean HP will stop manufacturing devices in China, as it has invested heavily in manufacturing plants there. But as companies like Dell and Apple have done, moving some production to countries like Vietnam could make them less dependent on China for assembling devices in the future.
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