In a bid to bolster its supply chain resilience, tech giant HP is taking significant steps to diversify its manufacturing locations. While the company plans to commence laptop production in Thailand and Mexico this year, it has reiterated its commitment to maintaining its 20,000-square-meter facility in Chongqing, China, acknowledging the country’s vital role in its supply chain.

With a view to reducing risks associated with a centralized production base, HP aims to spread its operations across various countries. By expanding laptop manufacturing to Vietnam next year, the company seeks to fortify its global supply chain and ensure smooth fulfillment of consumer and commercial demands.

As the world’s second-largest PC maker in terms of shipments, HP’s strategic move underscores its dedication to providing a stable supply of laptops and mitigating potential disruptions in the ever-evolving global market. By embracing geographic diversification, the tech company is poised to stay at the forefront of the industry and continue meeting the needs of its customers worldwide.

HP remains optimistic about its business prospects in China and has emphasized its commitment to the region. In a recent statement, the tech giant highlighted “significant opportunities” for growth and disclosed the opening of a new research and development center in Chongqing. This facility will be dedicated to pioneering computing innovations catering to customer needs.

Despite the market decline, HP managed to fare better than most competitors. With a minor 1% drop in shipments to 13.3 million units last quarter, the company utilized effective strategies like selling excess inventory and experiencing a slight increase in Chromebook sales. This performance secured HP as the best-performing Windows PC maker for the quarter, only surpassed by Apple, which saw an 8% rise in shipments to 5.5 million units.

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