Asus moved over 90% of US-bound PC and motherboard production out of China on tariffs

Asus built its motherboards and PCs for US buyers largely in China. After Washington put tariffs of 30% on many US-bound imports from that country, the PC maker worked with its electronics manufacturing services partners 'to adjust production site allocation and invest in capacity realignment', CFO Nick Wu said on an August 13, 2025 earnings call. By the end of the second quarter, more than 90% of the production base for motherboards and PCs had shifted to Thailand, Vietnam and Indonesia.

The move was preventive as much as reactive: as of the call, the tariffs directly hitting Asus applied only to steel and aluminum components in a small portion of its products, and most of the portfolio escaped levies through inclusion on the US-China tariff exemption list. Wu said Asus would wait for country tariffs to be finalized before deciding how much cost to pass to consumers or distribution channels, depending on relative bargaining positions. The mitigation investments, plus a strong Taiwan dollar, trimmed operating margin by 0.5 percentage points in the quarter ended June 30.

Asus is not alone: HP disclosed in May 2025 that fewer than 10% of its North America-bound PCs and printers would be made in China by that September, and Apple planned $600 billion of US investment. Uncertainty remained — a Section 232 investigation into semiconductor imports was underway, and Wu noted TSMC's planned $100 billion US investment could earn exemptions for Asus products, since most of its chips come from TSMC. Co-CEO S.Y. Hsu framed the playbook as product innovation, diversified markets and a flexible supply chain.

Over 90% of the US-bound motherboard and PC production base now sits in Thailand, Vietnam and Indonesia; the shift cost 0.5 points of Q2 operating margin.

US tariffs of 30% on many China imports made a China-centered production base for US-bound goods a structural risk.

The company treated site allocation as adjustable, reallocating capacity through EMS partners rather than building its own plants.

A Section 232 investigation into semiconductor imports loomed, making further geographic diversification a form of insurance.

The shift was executed before country-level tariffs were finalized, keeping the later choice on cost pass-through open.

A production footprint optimized for cost is a tariff liability; treating site allocation as a flexible dial, not a fixed asset, lets a company re-anchor most of it within a quarter.

By the August 13 earnings call the relocation was largely done for the affected categories, with Asus waiting for final country tariffs before deciding how much cost to pass to consumers or distribution channels. The quarter's mitigation investments had already shaved 0.5 percentage points off operating margin, alongside currency headwinds from a strong Taiwan dollar. Management kept both levers open: TSMC's US investment could soften any semiconductor tariffs, and pass-through remains available depending on bargaining positions with suppliers and distributors.