Dodging US tariffs, ASUS has shifted over 90% of its motherboard and PC production to Southeast Asia, betting on supply chain flexibility to safeguard margins.
ASUS has relocated the bulk of its manufacturing out of China in response to escalating US tariffs. The company confirmed that more than 90% of its motherboard and personal computer output for the American market is now being produced in Thailand, Vietnam, and Indonesia.
Chief Financial Officer Nick Wu announced the move during an earnings call last month, noting that the change occurred in the second quarter. He said ASUS has been working closely with its contract manufacturing partners to reallocate production sites and invest in new capacity.
The change comes as Washington maintains tariffs of around 30% on a wide range of Chinese imports. By shifting its supply chain, ASUS joins rivals such as HP and Apple, both of which have announced plans to reduce reliance on Chinese factories.
Wu explained that ASUSwill assess final tariff rates at its new Southeast Asian facilities before deciding whether additional costs will be passed on to customers or distributors.
Currently, most of ASUS’ portfolio avoids tariffs because many products fall under exemption lists. Only steel and aluminium components face levies. A potential risk, however, is whether the US government extends tariffs to semiconductors.
The White House launched a Section 232 review earlier this year to evaluate national security concerns around imported chips.
Wu said Asus may avoid the worst of any new measures since most of its chips are supplied by Taiwan Semiconductor Manufacturing Company (TSMC), which is investing $100 billion in American facilities. President Donald Trump has hinted that companies making significant US investments, such as TSMC and NVIDIA, may be eligible for exemptions.
Despite these adjustments, the shift has already trimmed ASUS’ operating margin by 0.5 percentage points. A stronger Taiwan dollar has also pressured profitability. But the company remains optimistic, as per reports.
