On November 27, Nikkei quoted sources as saying that U.S. manufacturers such as Microsoft, HP and Dell are hoarding electronic components made in China in order to build enough inventory before the new U.S. President Trump officially returns to the White House in January next year and raises tariffs on China.
Recently, Trump stated on social platforms that in response to the illegal immigration and drug epidemic caused by external imports, after taking office, he will impose a 10% tariff on all goods imported from China, and will impose a 25% tariff on all goods imported from Mexico and Canada.
In response to this upcoming policy, people familiar with the matter said that Microsoft has asked suppliers to prepare more components for its cloud server infrastructure from November to December, mainly to avoid the impact of the upcoming tariffs. Microsoft also requires suppliers to manufacture components outside China and move all Xbox game console-related assembly lines out of mainland China as soon as possible. In addition, Microsoft also requires suppliers to try to manufacture Surface products outside China before the end of next year.
In addition, there are multiple reports that PC majors HP and Dell have also asked suppliers to produce more parts from November to December. The world's two largest PC manufacturers have begun reviewing their procurement plans for 2025, hoping to reduce the parts made in mainland China needed for their own laptops and desktop PCs.
There are also reports that HP has made another adjustment after adjusting its procurement system. This time, it is reported that for senior procurement managers and R&D business, it is reported that the R&D unit will lay off another wave of layoffs, and the focus will continue to shift back to North America. In addition, HP's purchasing power was transferred back to North America, and a new layer of foreign managers was added to all Chinese purchasing managers. The supply chain described this as a "nice-sounding adjustment, but in fact it is an empty one." Ernest Nicolas, HP's top supply chain executive, has expanded his responsibilities to include IT and information security.
Another Chinese manufacturer that supplies electronic components to HP, Apple and Microsoft revealed that "many American customers were anxious to know whether we could speed up the move of production lines out of China during meetings."
According to reports, the increased output of Chinese-made parts in the next few months will mainly be used in other countries and regions not affected by U.S. tariffs to quickly increase local device production capacity and assembly lines. However, this is only one of the strategies of relevant manufacturers to deal with the US increase in import tariffs on Chinese goods.
It is worth noting that as early as early 2023, there was news in the industry that PC giant Dell has notified the supply chain and foundries that it plans to stop using chips made in mainland China in 2024. This includes chips produced in mainland China by mainland Chinese manufacturers and non-mainland Chinese manufacturers. In addition, rumors also show that Dell plans to move 50% of its production capacity out of mainland China by the end of 2025.
Then in August this year, "Nikkei Asia" quoted sources as saying that HP, the world's second largest PC manufacturer, was seeking to transfer more than 50% of its personal computer production out of mainland China to reduce geopolitical risks.
Although HP later officially responded that China is a very important part of its global supply chain, the company remains firmly committed to its production operations in Chongqing. But HP hasn't outright denied plans to move manufacturing of some products overseas.