Tech Giant Shifts Focus to Southeast Asia Amid Geopolitical Tensions
The ongoing tech supply chain pressure has prompted another major company to reevaluate its operations in mainland China. PC Partner Group, a leading assembler of graphics cards using Nvidia chips, has relocated its headquarters to Singapore and listed on the city-state’s exchange. This strategic move aims to expand research and development, as well as manufacturing capabilities, in Southeast Asia.
A New Chapter in Indonesia
The company has already begun operating a new factory in Indonesia, marking a significant milestone in its regional expansion. Located in Batam, one of the Indonesian islands closest to Singapore, the factory will play a crucial role in strengthening PC Partner’s presence in Southeast Asia.
Diversification Beyond Greater China
PC Partner’s decision to relocate comes at a time when many multinational businesses are under pressure to reassess their ties with China. The company’s “China+1” strategy, which involves diversifying beyond Greater China, has become increasingly important in light of intensifying geopolitical tensions with the US.
Nvidia Partnership Remains Key
The manufacturer’s partnership with Nvidia remains a vital component of its business. The company’s listing ceremony in Singapore included John Milner, vice-president of worldwide GeForce sales, highlighting the significance of this partnership.
Strong Financial Performance
In the first half of 2024, PC Partner reported revenue of HK$4.94 billion (US$634.5 million), representing an 18.4 per cent year-on-year increase driven by higher graphics card sales. The company’s shares have performed well, with a 47.02 per cent year-to-date increase.
Singapore Listing Marks New Era
PC Partner’s secondary listing on the Singapore exchange will enable the company to leverage the city-state’s strategic advantages for international expansion. The listing ceremony marked a new era for the company, with plans to commit further resources and increase its presence in Singapore and surrounding regions.
R&D and Manufacturing Operations
Tony Wong Shik Ho, chairman and CEO of PC Partner, emphasized the company’s commitment to expanding its research and development, as well as manufacturing operations, in Singapore and Southeast Asia. This move is expected to drive growth and innovation in the region.
A Shift in Global Supply Chains
PC Partner’s relocation is part of a larger trend of companies reassessing their global supply chains. As geopolitical tensions continue to evolve, businesses are being forced to adapt and diversify their operations to remain competitive.
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