Asus Shifts Over 90% of Production to Southeast Asia Amid Tariff Pressures

TAIPEI/BANGKOK – Taiwanese electronics giant Asus announced during its second-quarter earnings call that more than 90% of its PC and motherboard production has been relocated from China to Southeast Asia—particularly Thailand, Vietnam, and Indonesia—in a strategic move to mitigate escalating U.S. tariffs.

The move comes amid growing tensions in the U.S.–China trade war, which saw blanket tariffs imposed by former President Trump in April 2025. In response, Beijing introduced high import taxes, prompting companies such as Asus to reassess their supply chains. Shifting production to ASEAN countries, where tariffs are lower—for example, Thailand and Indonesia at 19%, Vietnam at 20%—allows Asus to shield its cost structure and preserve competitive pricing.

Asus also revealed that it has shifted its server production to the United States by the end of 2024, further diversifying its manufacturing footprint. While reduced tariffs offer some buffer against escalating trade costs, Asus warned that residual expenses could still pressure consumer pricing.

The company is closely monitoring proposed U.S. semiconductor tariffs, particularly given its reliance on chips from Taiwan Semiconductor Manufacturing Company (TSMC), and is adapting its pricing and logistics strategies accordingly.

Industry analysts say that Asus’s moves are emblematic of a wider regional trend: multinational firms are increasingly turning to Southeast Asia to build tariff-resilient supply chains while maintaining access to both Western and regional markets. “ASEAN’s role as a manufacturing alternative to China is growing rapidly, particularly for electronics,” said one market observer, pointing to improving tariff exposure and political stability as key drivers.

However, the transition is not without challenges. Relocating production involves considerable logistical and operational complexities, from securing reliable electricity and infrastructure to training workforces. It also places pressure on regional governments to upgrade infrastructure and streamline regulations to support such investments.

Asus’s aggressive offshoring strategy highlights the deepening realignment of global manufacturing in response to trade volatility—bringing both opportunity and competition to the Southeast Asian industrial landscape.