Eyeing the expansion of supply sources amid geostrategic and labour concerns, global notebook brands are shifting their production base from China to Southeast Asia as shipments rise worldwide.
Several PC manufacturers are moving production from China to Vietnam and Thailand, which offer lower labour costs, improve infrastructure, and expand domestic markets, according to a report by TrendForce. The report highlighted that brands are diversifying their supply chains in response to geopolitical risks, tariffs, and rising wage bills.
As per the analysis, global notebook shipments are expected to reach 173.65 million units in 2024, representing a 3.7% YoY increase from 2023. This growth is tempered by conservative consumer spending due to diplomatic and economic uncertainties. Demand is anticipated to be strongest in the entry-level consumer and education sectors.
Out of these, TrendForce estimated that the proportion of notebook manufacturing outside China will rise from 7.2% in 2023 to 12.4% in 2024, mainly focusing on the two Southeast Asian countries.
Vietnam’s share of notebook manufacturing is expected to grow to 6% in 2024, mainly due to Dell and Apple’s proactive efforts. Thailand’s share is predicted to reach 2.3%, driven by HP’s partnership with Quanta and Inventec’s new local production starting in the latter half of the year.
Despite this shift, the report also mentioned that China will remain crucial due to its extensive manufacturing capacity and efficient supply chain, particularly for markets less affected by geopolitical issues and the domestic Chinese market.
As notebook production becomes more diversified, brands must adapt quickly and adjust their supply chain strategies to stay competitive in an increasingly complex global environment.
Additionally, AI notebooks are slated for release in the second half of 2024, but their high costs may delay consumer purchases. Significant impacts from AI models in the supply chain are anticipated by 2025, driven by business upgrade demands, which could boost global notebook shipments by 5% YoY.
