Asus Moves Most of its PC Making from China Due to Trade Issues
Asus has made a big change and moved most of its motherboard and PC making away from China. This shift, over 90%, is because of the trade troubles with the U.S. The goal is to make its supply work better for big markets like the U.S.
Why They Did It To Avoid Trade War Risks
The big reason for this change is the tough trade war between the U.S. and China. At times, the U.S. put very high taxes, up to 145%, on goods from China, and right now it's 30%. These high taxes and unsure times made Asus look for places that are more stable to make their stuff.
New Places for Making Things in Southeast Asia
Asus isn't just relying on one place anymore. Now, they are making things in:
- Thailand
- Vietnam
- Indonesia
These places have lower taxes for goods that go to the U.S. 19% for Thailand and Indonesia, and 20% for Vietnam. By using a few different places, Asus can avoid problems if the rules change suddenly in one area. They also started making servers in the U.S. before this.
What It Means for Buyers and Ongoing Worries
Even though the new taxes are lower, managing making things in three countries might make costs go up. Asus says it might have to make buyers or their selling network cover some of these costs if they get too high.
Also, the worry about new taxes, like a possible 100% tax on chips not made in the U.S., is still there. Since Asus uses a lot of chips from places like TSMC, they are watching how they might avoid these taxes. This ongoing uncertainty means that while the move helps make Asus's supply safer, what buyers will pay stays uncertain for now.
Source: tomshardware
