ASRock to Move Manufacturing Out of China Due to Trump's Tariffs

[Nomad76]

ASRock told PCMag it plans to move some of its production out of China. "We need time to shift the manufacturing of GPU cards and other products hit by the 10% tariff to different countries," they said. This week, the White House put a 10% tax on all Chinese imports to the US, this tax applies on top of any other taxes the US already had on certain Chinese goods. ASRock also said, "While we move from making things in China to making them elsewhere, we might take on some of the cost and raise prices a bit to show the higher costs." But they added, "It's not easy to raise prices because the market is still very competitive." ASRock also told PCMag that it already pays a 25% tax on its power supplies made in China. "For items like PSUs that already have an extra 25% tax, makers will keep doing what they've been doing," the company said.

If Trump administration doesn't follow through with his threats of huge tariffs against Taiwan, the PC gaming industry will primarily feel the effects on companies like ASRock and MSI (which makes its motherboards in Shenzhen, China). These are the component and peripheral makers that have part or all of their manufacturing processes in China. ASRock's announcement isn't a huge surprise, as we saw hints of this trend in late 2024 when PC Partner (second-biggest graphics card maker, producing PCBs for brands such as Inno3D and Zotac) moved its headquarters from China to Singapore. It will be no surprise if other top-tier brands such as GIGABYTE, MSI, and ASUS take similar actions sooner or later.



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[Space Lynx]

Only thing I have learned about the hobbies I enjoy, is that you can never predict the future. So, never take what you already have for granted. This is why I plan to always keep back up emergency parts, even if I do upgrade whatever part in my PC for the future. It's just not worth the risk of not being able to kick back and game.

 

[remixedcat]

Where are Gigabyte mobos made??

 

[HairyLobsters]

Moving to Taiwan?

 

[Event Horizon]

Here comes the Tarifflation.

 

[LabRat 891]

Where are they moving to? Taiwan?

I'd love to see another Taiwanese board manufacturer.

 

[Ruru]

Funny how I don't even know what tariffs are. Guess it's time to do some research.

 

[Nomad76]

Where are they moving to? Taiwan?

I'd love to see another Taiwanese board manufacturer.

Likely Vietnam and/or Taiwan

 

[mav1178]

Moving to Taiwan?

Where are they moving to? Taiwan?

I'd love to see another Taiwanese board manufacturer.

already headquartered in Taiwan in the case of ASRock, but you have to also consider the current climate where the US is actively threatening Taiwan with upwards of a 100% tariff for apparently manufacturing too many chips there.

so Taiwan may not be the logical choice. who knows... a week ago no one thought Canadian tariffs were a real thing, until it happened.

 

[DirtyDingusMcgee]

Love it. Can't wait to see it more and more.

 

[LabRat 891]

Likely Vietnam and/or Taiwan

I'd personally be pleased to see either.
From what little I've gathered in the past 5-8 years or so, Vietnamese 'manufacturing' is nothing at all like the picture us Americans got in the 90s-00s.
Needless to say, I don't think "a child sweatshop worker made this" when I see "Made in Vietnam" on something.

already headquartered in Taiwan in the case of ASRock, but you have to also consider the current climate where the US is actively threatening Taiwan with upwards of a 100% tariff for apparently manufacturing too many chips there.

so Taiwan may not be the logical choice. who knows... a week ago no one thought Canadian tariffs were a real thing, until it happened.

We'll see.
I feel that Taiwan is extremely likely to 'play ball' (as the Sheinbaum and Trudeau admins did).
Especially, with TSMC screaming in the Taiwanese administration's ear

 

[mav1178]

We'll see.
I feel that Taiwan is extremely likely to 'play ball' (as the Sheinbaum and Trudeau admins did).
Especially, with TSMC screaming in the Taiwanese administration's ear

yeah if it was only that simple. please read more about what has happened over the last 12 months with regards to what was asked of the two countries last week, it was not as simple as you make it out to be.

"play ball" meaning they just pay more? TSMC can move manufacturing over to the US all they want, but 1) there aren't enough qualified engineers in the US to just set up shop, and 2) see the current administration's policy on immigration, legal or not.

the bigger long term issue is, instability like this in governance makes price increases more out of control. so if price levels and inflation were things you cared about, it will only get worse.

 

[bobsled]

For reasons unspecified? It doesn’t really affect your GPU prices being expensive, as Nvidia and AMD have done that regardless.

 

[Wirko]

So the final assembly, testing and box printing will take place somewhere else? That's how a tech product earns a "Made in Nonchina" badge?

 

[MxPhenom 216]

For reasons unspecified? It doesn’t really affect your GPU prices being expensive, as Nvidia and AMD have done that regardless.

I could list so many things but this a tech forum.

Mind you, some retailers are already increasing prices above original pricing, siting tariffs.

 

[illusion archives]

Well, ASRock has already be called as VietnamRock in China for a few of years.

 

[TheinsanegamerN]

Likely Vietnam and/or Taiwan

Vietnam is more likely. A lot of manufacturing has been moving there since the 2020 lockdowns. Bonus for asrock: vietnam is much friendlier with the US/western markets in general. They've been rapidly industrializing and building the infrastructure needed to support those moving from China.

Taiwan is a very small country, so while high margin stuff like chip making makes sense there, lower margins stuff like motherboards make more sense in Vietnam. Vietnam also doesnt have the water restrictions Taiwan has.

yeah if it was only that simple. please read more about what has happened over the last 12 months with regards to what was asked of the two countries last week, it was not as simple as you make it out to be.

It's really not that complicated. The answers have been plain as dirt for all to see for decades, but we've been collectively gaslit into thinking these couldnt possibly be solutions because it upset some powerful people. Turns out the answers are pretty simple, you can just do the thing everyone said you couldnt do because..... ReAsOnSyOuJuStCaNtOk

"play ball" meaning they just pay more? TSMC can move manufacturing over to the US all they want, but 1) there aren't enough qualified engineers in the US to just set up shop, and 2) see the current administration's policy on immigration, legal or not.

More likely trade concessions and agreeing to bring their cutting edge nodes stateside, which they ahve now folded on and are going to be doing with 3nm tech. As for engineeers......you dont need immigration. You have tens of millions of underemployed people in country, TRAIN. THEM. TO. DO. THE. JOB! It's not that hard, you gotta INVEST in your employee base, just like they do everywhere outside the US.

Hey look, another solution we just havent done up till now because......ReAsOnSyOuJuStCaNtOk.

It's like people have completely forgotten how influential america was in the semiconductor race and the can do attitude that built the most incredible industrial powerhouse until china showed up. Now its all "oh well you cant do that because these reasons and you cant just train people you cant just build there what about a goose species we have to import 10 million people and raise taxes instead we just cant do anything about it" runaway defeatism.

the bigger long term issue is, instability like this in governance makes price increases more out of control. so if price levels and inflation were things you cared about, it will only get worse.

This instability was inevitable, it's been allowed to percolate since the 70s when we collectively decided to stop investing in our best and brightest and rely on mass immigration to fill our needs, until that became unsustainable too. Eventually you have to either rip the bandaid off and start rebuilding the industries and knowledge bases you outsourced to save pennies 50 years ago, or accept downgrading your economy, culture, and society to 2nd then 3rd world tier while giving up your influence on a global scale.

 

[mav1178]

ReAsOnSyOuJuStCaNtOk.

so your entire argument is boiled down to a bunch of upper and lower case secure password requirement text... didn't know it was that simple.

while the reasoning is sound, I ask: at what cost to the existing economic structure, and will we be able to see the results before the entire supply chain is upended and remade into something unrecognizable?

on your point about "just train the engineers" - could you perhaps enlighten on a timeline needed to train said engineers and the costs associated with it? and the timeline for deploying the same level of fabs and supply chain? I put engineers and immigration into the same sentence because it is a well known fact that we have underinvested in our education system for decades, so to expect this pool of human capital to appear in the next 5 years magically because of training is just unrealistic.

and at the end of the day, I have no problem with more domestic manufacturing. let's also be realistic and admit that this will cause the prices to go up by a lot, which is basically not the goal that the average American wants, right? I mean, they did vote the current administration in to lower prices...

 

[zzd911]

The US is more important to these brands, simple business decision.

 

[R-T-B]

If Trump administration doesn't follow through with his threats of huge tariffs against Taiwan

Wait Taiwan? Is Trump threatening them now?

 

[A Computer Guy]

I wouldn't get too worked up about it yet. A lot of these moves are more about triggering more favorable trade negotiations. I would be perfectly fine paying %10 to %20 more for an ASRock motherboard if it also meant the IRS & Federal Income Tax could be completely disbanded and replaced with Tariff based revenue also forcing the Gov't to shrink to some more reasonable level from the Tax money wasting/leaking goliath that it currently is. (sorry for the run on sentence)

 

[MxPhenom 216]

I wouldn't get too worked up about it yet. A lot of these moves are more about triggering more favorable trade negotiations. I would be perfectly fine paying %10 to %20 more for an ASRock motherboard if it also meant the IRS & Federal Income Tax could be completely disbanded and replaced with Tariff based revenue also forcing the Gov't to shrink to some more reasonable level from the Tax money leaking goliath that it currently is.

Hes not negotiating anything though, and you dont need to threaten a trade war to get more "favorable" trade negotiations started. Also replacing income tax with tariffs is a pathetic libertarian wet dream that doesnt work.

 

[A Computer Guy]

Hes not negotiating anything though, and you dont need to threaten a trade war to get more "favorable" trade negotiations started. Also replacing income tax with tariffs is a pathetic libertarian wet dream that doesnt work.

When the status quo won't do you have to push and shove and see where the chips fall. Trading partners are not your friends and they won't give you anything for free.

 

[MxPhenom 216]

When the status quo won't do you have to push and shove and see where the chips fall. Trading partners are not your friends and they won't give you anything for free.

I didn't say anything about status quo

 

[Scircura]

I would be perfectly fine paying %10 to %20 more for an ASRock motherboard if it also meant the IRS & Federal Income Tax could be completely disbanded and replaced with Tariff based revenue

Me too! However the numbers don't... quite... add up. The income from tariffs would barely pay for Trump's golf trips. (I kid.) But seriously, look at the actual US budget and explain how to cut 99% of that in order to fund the government with a motherboard tax.

it is a well known fact that we have underinvested in our education system for decades

Please don't abuse phrases like "it is a well known fact" for things that are not facts. US universities draw many international students (edit: maybe not for long), so I would argue the "brain drain" is actually flowing in the US's favor.

Back to the topic...

Things are moving fast (and breaking) in Trumpland so I haven't kept up with the details of the latest tariffs. Has someone seen a good explanation online of what the tariff rates were before this change, what they are after, and whether these components were previously exempt? I was under the impression that tariffs on Chinese-origin electronics were applied for long enough (starting in Trump I era, continuing in some form during Biden) that most of these computer part manufacturers had already adapted by shifting final production to other countries. But that's just an impression, I could be totally wrong. Edit: evernessince had a nice explanation in a tariff-related thread from May 2024.