Asus reveals 90% of its U.S.-bound computer and motherboard production was shifted from China to evade tariffs, with manufacturing now taking place in Thailand, Vietnam, and Indonesia.

Asus Shifts Production Away from China Amid US-China Trade War

In response to the ongoing trade war between the United States and China, tech giant Asus has decided to move most of its U.S.-bound motherboard and PC production out of China. The company has chosen to expand its production of these products in Southeast Asia, with sites in Thailand, Vietnam, and Indonesia.

According to Asus' 2Q 2025 Investor Conference call, over 90% of the production for these products has already been distributed to these new regions. This move comes as a result of the tariff rates imposed by the trade war. While Thailand and Indonesia, as well as Vietnam, have a 19% tariff rate, the current import tax for Asus' products in Vietnam is 20%, significantly smaller than the 30% on Chinese goods.

President Donald Trump placed tariffs on all trading partners in early April 2025, leading to a temporary 10% and 30% tariff, respectively, after negotiations. However, Trump has promised to put 100% tariffs on chips, a crucial component for Asus' products. He has, however, exempted companies that build semiconductors in the U.S. The exact workings of these exemptions are still unclear, and it's not yet known how Asus will be affected.

The company is taking steps to mitigate the risk of going all-in on building production lines in a single country. Asus uses many of the chips for its products from TSMC, and this is being taken into account in the costing. The decision to separate manufacturing into three different countries might cost more and make logistics more difficult, but the goal is for Asus to maintain or lower its costs to prevent consumers from needing to pay more for the same item in the near future.

Trump extended the deadline for China and the U.S. to reach a deal to November this year. If a deal is reached, it could potentially lower the tariffs and make the expansion into Southeast Asia more beneficial for Asus. Until then, the tech giant continues to navigate the complexities of the trade war and its impact on its operations.