On August 15, Asus revealed during its second-quarter 2025 investor call that it has moved more than 90% of its motherboard and PC production out of China, expanding operations to facilities in Thailand, Vietnam, and Indonesia. The company had previously shifted its server production to the United States at the end of 2024.

The move underscores the impact of global trade policies on the semiconductor and PCB supply chain. In April 2025, the U.S. administration imposed broad tariffs on all trade partners, prompting retaliatory measures from China and escalating trade tensions. Although a temporary 30% tariff agreement was reached and negotiations extended to November, the uncertainty has driven companies like Asus to diversify production regions to reduce risk exposure.

Southeast Asian tariffs remain comparatively lower—19% in Thailand and Indonesia, and 20% in Vietnam—versus 30% on Chinese goods. While distributing production across multiple countries increases logistical complexity, Asus noted that this approach mitigates risks associated with concentrated manufacturing and helps ensure supply chain resilience. The company cautioned that any cost increases could be passed on to consumers or distributors.

Semiconductors remain a critical factor in Asus’ supply chain strategy. Many of the company’s components are sourced from TSMC, and potential U.S. semiconductor tariffs—ranging up to 300%—add further uncertainty, even as exemptions exist for domestically produced chips. The reshuffling of PCB and component production highlights how geopolitical factors directly influence semiconductor sourcing, assembly, and global distribution networks.

Despite operational challenges, Asus aims to leverage its expanded footprint in the U.S. and Southeast Asia to stabilize costs, protect supply continuity, and minimize disruption to end customers, illustrating broader trends in semiconductor supply chain diversification.