Server hardware makers shift production out of China

Tariffs on Chinese products and unstable U.S./China relations cause server makers to speed up their move out of China.

Server hardware makers shift production out of China
Etereuti (CC0)

The supply chain of vendors that build servers and network communication devices is accelerating its shift of production out of China to Taiwan and North America, along with other nations not subject to the trade war between the U.S. and China.

Last May, the Trump Administration levied tariffs on a number of imported Chinese goods, computer components among them. The tariffs ranged from 10-25%. Consumers were hit hardest, since they are more price sensitive than IT buyers. PC World said the average laptop price could rise by $120 just for the tariffs.

But since the tariff was based on the value of the product, that means server hardware prices could skyrocket, since servers cost much more than PCs.

But since the tariff was based on the value of the product, that means server hardware prices could skyrocket, since servers cost much more than PCs.

Companies that are moving production out of China

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