Titled: "Quanta Computer Navigates Trade Wars with Global Expansion Strategy"
Quantum Computing Firm Maintains Solid Demand Despite Tariffs
In a jovial tone at the company's 37th anniversary event, Quanta Computer Inc chairman, Barry Lam (林百里), said that customer demand remains stable, even with the looming US tariff threat. Amidst the trade tension, Quanta has been bolstering its production capabilities to weather disruptions caused by President Donald Trump's trade policies.
During the event, held in New Taipei City's Linkou District (林口), Lam expressed confidence in Quanta's operational resilience, highlighting the company's ability to offer reliable solutions for customers as it operates nine manufacturing facilities worldwide.
Trump imposed a 32% "reciprocal" tariff on imports from Taiwan on April 2, with an immediate 10% tariff applied to most global imports. Although the implementation of the 32% tariff was delayed by 90 days, Quanta has taken proactive measures to adapt to the evolving geopolitical landscape.
For instance, the company primarily manufactures servers in the US and Germany, while notebook computers destined for markets outside the US are produced in China. Notebooks intended for the US market are produced in Thailand and Vietnam, a move aimed at bypassing the tariffs. Automotive electronics are mainly manufactured in Mexico, leveraging the close proximity to the North American market.
Lam stressed that Quanta's strategic expansion across multiple countries, including China, Vietnam, Thailand, the US, Mexico, and Germany, has provided the company with the agility needed to respond rapidly to the shifting international environment, particularly the tariff policies initiated by Trump.
Vice chairman C.C. Leung (梁次震) echoed Lam's sentiments, acknowledging that Quanta has steadily expanded its production footprint to remain adaptable in response to Trump's inconsistent stance on tariffs.
Lam mentioned that demand from the four leading US cloud service providers – Amazon.com Inc, Alphabet Inc, Microsoft Corp, and Meta Platforms Inc – remains robust, with orders unchanged. As these CSPs continue to invest in data centers and related infrastructure, Quanta has been ramping up production to meet their needs.
AI applications have experienced exponential growth in recent years, with costs dropping annually. Despite the sector still having a long way to go, Lam remains optimistic about its future potential. When asked about his retirement plans, the 76-year-old Lam admitted no definitive answer, adding that his improving health and Quanta's growing business has managed to keep him active.
However, Lam mentioned that the charm of being a traditional original equipment manufacturer (OEM) is fading, and Quanta aims to evolve into an independent research and development company, a vision shared by his team.
References:1. Quanta Computer's production diversification strategy2. Quanta's investment in quantum computing firm Rigetti3. Quanta's strategic expansions in California and Tennessee4. Quanta's production footprint in Thailand and Vietnam5. Quanta's financial performance and plans for corporate governance reform
- To counteract the US tariff threat, Quanta Computer Inc, in a marked strategic shift, has been enhancing its production capabilities purely in various countries, including China, Vietnam, Thailand, the US, Mexico, and Germany, as revealed by chairman Barry Lam at the company's 37th anniversary event.
- The ongoing trade tensions have not hampered Quanta's confidence or customer demand, as stated by Lam during the event, which was held in New Taipei City's Linkou District.
- Leveraging this globalized manufacturing footprint, Quanta has been adapting proactively to the evolving geopolitical landscape caused by President Donald Trump's trade policies, with notebook computers destined for markets outside the US being produced in China, while those intended for the US market are manufactured in Thailand and Vietnam to bypass tariffs.
- Looking ahead, Quanta remains optimistic about the growth potential of the AI sector and is striving to transition from a traditional original equipment manufacturer (OEM) to an independent research and development company, a vision shared by its team. This shift in focus underlines the company's forward-thinking approach within the industry, finance, and technology landscapes.
