- Lenovo plans to start production in Saudi -Arabia in 2026
- The biggest benefit is 10% against 245% mutual tax
- The US PC market is 27% of the global market
Larger PC producers such as Lenovo, HP and Dell reportedly investigate building new production facilities in Saudi Arabia to avoid high US tariffs on Chinese-made goods.
A new report from Digator (Via Toms Hardware) Said Lenovo seems to be the longest alone after announcing a PC and server mounting plant in Riyadh in January this year, supported by a $ 2 billion investment from a Saudi Public Investment Fund.
With the production to start in 2026, the Hong Kong-based OEM’s plans would see the open a new Middle East and Africa (MEA) headquarters in Saudi Arabia, “[enhancing] its global presence. “
Using Saudi -Arabia to avoid Chinese customs rates
Digator Says HP and Dell also sent teams to Saudi Arabia to scout potential factory locations for local government invitations.
The biggest attraction for producers to move to Saudi Arabia is the 10% mutual tariffs compared to 245% for China.
Having a base in Riyadh would also allow Lenovo, HP and Dell to have better access to the MEA markets – a factor recognized by Lenovo.
By 2024, Lenovo sent 11,872 desktops and notebooks to the United States, making it the third largest in terms of volume with a 17.2%market share behind Dell (22.8%) and HP (25.3%).
With 69,210 PCs sold throughout the United States last year, the country accounted for 27% of all global PC shipments, highlighting the country’s purchasing power.
Lenovo, HP and Dell are not the only companies that want to get out of China to reduce costs. TSMC and Apple recently announced their own production investments in the United States that span production, F&U, training and more.
However, the immediate future of the PC market is still uncertain. “In addition to the direct impact of tariffs, the stop-starting character of messages and delays has thrown uncertainty about pricing for consumer electronics this year,” explained Canalys analyst Greg Davis.
