Top Stories
Top Stories
Tech

Microsoft, Alphabet reportedly plan to shift production out of China

Key Points
  • Personal computer makers HP Inc and Dell Technologies are planning to reallocate up to 30% of their notebook production out of China, according to the Nikkei.
  • Microsoft, Alphabet, Amazon.com, Sony Corp and Nintendo Co are also looking at moving some of their game console and smart speaker manufacturing out of the country, the Nikkei added.
Donald Trump during bilateral meetings in Beijing in late 2017.
Jonathan Ernst | 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% of their notebook production out of China, according to the Nikkei.

Microsoft, Alphabet, Amazon.com, Sony Corp and Nintendo Co 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 Group of 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.

In June, Apple asked its major suppliers to assess the cost implications of moving 15%-30% 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.

Each morning, the “Beyond the Valley” newsletter brings you all the latest from the vast, dynamic world of tech – outside the Silicon Valley.

Subscribe:

By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.