Lenovo joins growing China exodus as manufacturers flee US tariffs — OEM moving production lines to India
Posted by batterymap01
from the Business category at
10 Mar 2025 01:56:26 am.
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Lenovo is moving all PC manufacturing to India over the next three years, the company announced at Tech World India 2025, and is preparing to do the same for its AI GPU servers in Pondicherry, India.
Lenovo has produced 12 million units in India and is planning to increase that to nearly 17 million to meet incoming domestic and international demand, according to aDigiTimes Asiareport detailing the news.
Although it didn’t mention tariffs, Lenovo -- a Chinese-owned company with five factories in China and one in Mexico -- owns 12% of the U.S. laptop market. President Trump’s 20% tariff on China and 25% tariff on Mexico will therefore impact its pricing strategy, making Lenovo laptops more expensive than the competition.
Lenovo isn’t the only company moving out of China to escape Trump’s tariffs. ASRock announced in early February that it will move manufacturing operations to Vietnam and Taiwan. HP made a similar announcement just a few days ago, saying that 90% of products bound for the U.S. will be made outside of the East Asian country by October this year. Even Dell said it’s diversifying its supply chain, meaning it will reduce its reliance on Chinese factories to make its products.
Aside from the tariffs, the White House’s export controls on the latest AI chips also force some PC parts manufacturers to move their operations. PC Partner, the manufacturer behind Zotac, Inno3D, and Manli brands and one of the largest GPU manufacturers in the world, ismoving its headquarters to Singapore, with a rumored production shift from China to Indonesia.
Other chip companies like Amkor Technology, Hana Micron, and even Intel arepouring billions of dollars into Vietnamto shift production away from China.
Trump administration's tariffs on Chinese goods are starting to take effect in the computer industry, with some larger companies announcing investments within the U.S. to move manufacturing within its shores. This includes TSMC, which announced anadditional $100 billion in spendingon three new fabs, two advanced packaging factories, and an R&D center in its Arizona campus.
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Trump also announced during his speech to the joint session of Congress that other companies, like Apple and Oracle, are investing hundreds of billions of dollars more because they want to avoid the tariffs that he’s placed on Canada, Mexico, and China.
Moving manufacturing inside the U.S. might not be viable for smaller companies, however. So they’re moving to nations with friendlier ties to the U.S., like India, Taiwan, and Indonesia, that aren’t affected by the tariffs. These moves will likely take years, especially if a particular company does not yet have an existing facility within the region.
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So as they wait for their production facilities and supply chains to come online, companies will have no choice but to raise their prices to cover the tariffs the White House has placed on their products.c
Tags: US tariffs
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