Amid escalating trade tensions between the United States and China, ASRock has announced plans to relocate its graphics card production out of China to avoid the new 10% tariff imposed on Chinese imports. The move comes as part of the company's strategy to mitigate rising costs and maintain competitiveness in the global market.

Manufacturing Shift to Other Countries

ASRock confirmed that due to the new U.S. tariff policy, it will transfer part of its GPU and other product manufacturing from its Shenzhen facilities to alternative locations. While the company has not disclosed specific destinations, reports suggest that Vietnam and Taiwan are among the potential options.

The transition is expected to be a complex and costly process, involving:

● Rebuilding supply chains

● Establishing new manufacturing facilities

● Navigating different regulatory environments

● Ensuring product quality in new locations

ASRock acknowledged that the relocation will lead to an inevitable increase in costs, which may result in slightly higher product prices. However, given the highly competitive nature of the market, the company stated that raising prices will not be easy.

Impact on Supply Chain and Consumer Prices

While relocating production will help ASRock bypass U.S. tariffs, it may lead to short-term supply chain disruptions and temporary fluctuations in product availability. Consumers could also experience price adjustments as the company balances relocation costs and market competition.

"In the transition period, we may absorb some of the costs and increase some prices to reflect the increased cost. Since the market is still highly competitive, it is not easy to raise prices," ASRock stated.

Broader Industry Impact

ASRock is not the only company adjusting its strategy in response to U.S. trade policies. Zotac, Inno3D, and Manli's parent company, PC Partner Group, has already moved its headquarters from Hong Kong to Singapore and relocated part of its GPU production to Indonesia to minimize tariff exposure.

Meanwhile, other major motherboard and GPU brands such as MSI, ASUS, and Gigabyte have not yet announced similar moves, though they may consider adjustments if trade tensions persist.

The Road Ahead

Despite the short-term financial strain, ASRock views this transition as an opportunity to diversify its manufacturing base, enhance long-term operational resilience, and reduce dependence on any single country.

As geopolitical uncertainties continue to shape global supply chains, tech manufacturers are closely monitoring policy developments and adjusting their strategies accordingly. ASRock's proactive response underscores a broader industry shift toward more flexible, diversified manufacturing operations to navigate the evolving trade landscape.