Will Inventec Begin Manufacturing in the U.S.?

12 Jan
money 2

Inventec chairman Richard Lee recently said the company would consider moving some production to the U.S. if customers agree. “If our customers want us to make products locally in the U.S. we will definitely do so,” he was quoted as saying in the Nikkei Asian Review. “We do have a plan about that… but it all depends on our clients’ will.”

Inventec supplies servers and computers to HP and Dell, and is a major supplier to Apple’s new wireless headphone AirPods, Fitbit wearables and Xiaomi smartphones.

At present, Inventec does most of its manufacturing in China, but makes servers for the U.S. market in Mexico. Jack Tsai, senior vice president of Inventec, said it would take six months to move the server final assembly line to the U.S., where production costs would be at least 30% higher than in Mexico.

Inventec expects its server business to grow about 10% in 2017, Tsai told the Nikkei Asian Review, adding that Inventec is doing well in China given its client portfolio, which includes Alibaba. In 2016, Inventec earned more than 35% of its revenue from its server business. Mobile phones and wearables accounted for another 15%, while its PC business now comprises less than 50% of its overall revenue.

Meanwhile, Lee said last week he is seeking to find someone to suceed him in the role of Inventec chairman by June. That person should be under the age of 65, Lee said, adding that he is aiming to lower the average age of managers in the company.