Major tech brand Acer, Asus, and HP have reportedly shifted some of their manufacturing capacity back into China, primarily due to rising components costs, due to AI. That rising cost has also eaten into their margins.
In a report by Nikkei, the increasing AI-related costs have left these companies with little recourse, forcing them to once again bring their business back into China’s manufacturing pool. That being said, Acer, Asus, and HP are reportedly not returning into the arms of major plants like Foxconn, who has shifted production capacity towards AI datacentres.
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