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Computer Makers Abandon China in Droves

Paul Rubens - May 2, 2019 - 10:55 AM
Computer Makers Abandon China in Droves
The proportion of server motherboards made in China has dropped from 90 percent to under 50 percent in two years.

(CCM) — China has long been the source of computer components, but now hardware vendors are turning their back on the country's low cost manufacturing facilities due to security concerns, according to an Engadget report.

Several countries including the U.S. have banned the use of Chinese-made equipment from Huawei in their 5G infrastructure, and the proportion of server motherboards made in the country powering severs sold around the world has dropped from 90 percent in 2017 to less than 50 percent today, according to supply chain analyst Digitimes Research's figures quoted in the report.

The latest business to move production out of China is server maker Super Micro, the company which was accused by Bloomberg of supplying hardware to a U.S. telecoms company which had had unauthorized modifications carried out on it at its factory in Guangzhou.

Super Micro said in a statement that it wanted to produce its servers "without depending only on those outsourcing partners whose production previously has mostly been in China."

Amazon and Apple use servers supplied by Super Micro, and following tests on Super Micro hardware which found no evidence of malicious modifications Apple called on Bloomberg to retract the story.

Super Micro is the world's third-largest server maker after HP and Dell, but in the first quarter of 2019 Super Micro suffered a 10 percent decline in total revenues. The move out of China may simply be an attempt by Super Micro to protect its brand and its leading position in the server market.

Image: © ferli – 123RF.com
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