Hong Kong computer electronics manufacturer PC Partner Group, a large assembler of graphics cards using Nvidia chips, has become the latest company to scale back from mainland China amid intensifying tech supply chain pressure.
The company said in a statement on Friday that it has relocated its headquarters to Singapore and made a secondary listing on the city state’s exchange, with the goal of expanding research and development (R&D) and manufacturing in Southeast Asia. It started operating a new factory in Indonesia last week.
The company first announced plans for the move in August.
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PC Partner, which was founded in 1997, is choosing to relocate at a time when many multinational businesses are under pressure to scale back business ties in China, a casualty of geopolitical tensions with the US. US president-elect Donald Trump has threatened to impose 60 per cent tariffs on Chinese products when he returns to the White House in January. It is also expected to become harder for China-based businesses to access advanced semiconductor components.
Nvidia is restricted from exporting its most advanced chips – including its consumer-grade flagship graphics processing unit (GPU), the GeForce RTX 4090 – to Chinese clients. Nvidia is expected to launch its next-generation 50-series GPUs at the CES electronics trade show in Las Vegas in January.
PC Partner has moved its headquarters to Singapore months after announcing that it would make the move. Photo: PC Partner alt=PC Partner has moved its headquarters to Singapore months after announcing that it would make the move. Photo: PC Partner>
PC Partner is an assembler of a variety of video gaming hardware, selling its products under the brands of ZOTAC, Inno3D and Manli. The company also provides manufacturing services to other brands.
The manufacturer’s new plant in Indonesia opened on November 14, according to a WeChat post from Manli’s official account on November 15. The new factory is located in Batam, one of the Indonesian islands closest to Singapore. Manli plans to establish a Singapore branch to “further strengthen business coverage and customer service in Southeast Asia”.
PC Partner’s manufacturing facilities have previously been mainly located in mainland China and Taiwan, according to its official website.
The secondary listing, to be executed by way of introduction, without issuing new shares, will enable PC Partner to leverage Singapore’s strategic advantages for international expansion. “We plan to commit further resources and increase our presence in Singapore and surrounding regions, particularly with R&D and manufacturing operations,” Tony Wong Shik Ho, chairman and CEO of PC Partner, said in a press release.
Highlighting the importance of its partnership with Nvidia, PC Partner’s listing ceremony in Singapore included John Milner, vice-president of worldwide GeForce sales, the company said in the release.
In the first half of 2024, PC Partner reported revenue of HK$4.94 billion (US$634.5 million), an 18.4 per cent year-on-year increase driven by higher graphics card sales. In its interim report, the company emphasised the importance of diversifying beyond Greater China – a market designation that includes Macau, Hong Kong and Taiwan – in a strategy known as “China+1”, which has become an increasingly common demand from customers.
PC Partner has also signalled its intent to convert the Singapore listing into a primary listing in the future, which would mean withdrawing from the Hong Kong stock exchange.
PC Partner’s Hong Kong-listed shares closed down 4.29 per cent to HK$4.69 on Monday. The stock remains up 47.02 per cent year to date. Its Singapore shares closed at 82 Singaporean cents (61 US cents) on the same day, slightly below the opening price of 85 Singaporean cents.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.
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