Tech War: PC Partner, Hong Kong Manufacturer of Nvidia Graphics Cards, Shifts Base to Singapore
PC Partner Group relocates headquarters to Singapore and opens new factory in Indonesia. Company aims to enhance R&D and manufacturing operations in Southeast Asia. Strategic move aligns with industry trends amidst geopolitical tensions and supply chain challenges.
The company has also initiated a secondary listing on the city-state's exchange, aiming to enhance research and development (R&D) and manufacturing operations in Southeast Asia. With the recent launch of a new factory in Indonesia, PC Partner is expanding its footprint in the region.
Founded in 1997, PC Partner's decision to move comes amidst a backdrop of increasing pressure on multinational companies to reduce their business connections in China due to geopolitical tensions. The company's relocation aligns with the shifting landscape, as US president-elect Donald Trump has threatened significant tariffs on Chinese products. This move is also influenced by restrictions on exporting advanced semiconductor components to China, impacting companies like Nvidia.
Nvidia, a key player in the tech industry, faces limitations on exporting its cutting-edge chips to Chinese clients, including the highly anticipated GeForce RTX4090 GPU. Despite these challenges, Nvidia is gearing up to unveil its next-generation 50-series GPUs at the upcoming CES electronics trade show in Las Vegas. PC Partner, known for assembling various video gaming hardware under brands like ZOTAC, Inno3D, and Manli, is adapting to these changes by diversifying its manufacturing locations.
The recent inauguration of PC Partner's new facility in Indonesia signifies a strategic shift towards Southeast Asia. The company's plans to establish a branch in Singapore demonstrate a commitment to bolstering its presence in the region. By leveraging Singapore's strategic advantages for international expansion, PC Partner aims to enhance its R&D and manufacturing capabilities. Tony Wong Shik Ho, the chairman and CEO of PC Partner, emphasised the company's dedication to investing in Singapore and surrounding areas.
During the listing ceremony in Singapore, PC Partner highlighted its partnership with Nvidia, with John Milner, vice-president of worldwide GeForce sales, in attendance. In the first half of 2024, PC Partner reported a revenue of HK$4.94 billion (US$634.5 million), marking an 18.4% year-on-year increase driven by robust graphics card sales. The company's focus on diversifying beyond Greater China reflects a strategic approach known as "China+1", responding to evolving customer demands.
Looking ahead, PC Partner has indicated its intention to potentially convert the Singapore listing into a primary listing, which could involve withdrawing from the Hong Kong stock exchange. Despite a slight decline in its Hong Kong-listed shares, PC Partner's stock has shown resilience, with a notable year-to-date increase. The company's Singapore shares closed slightly below the opening price, indicating a cautious market response to its strategic realignment.
PC Partner Group relocates headquarters to Singapore and opens new factory in Indonesia.
Company aims to enhance R&D and manufacturing operations in Southeast Asia.
Strategic move aligns with industry trends amidst geopolitical tensions and supply chain challenges.
Source: SCMP