Hong Kong-based PC Partner Group, a prominent manufacturer of Nvidia graphics cards, has moved its headquarters to Singapore in response to mounting global supply chain challenges and geopolitical tensions. The company announced the relocation on Friday, alongside its secondary listing on the Singapore Exchange. This move is part of a broader strategy to boost research and development (R&D) and expand manufacturing operations in Southeast Asia.
PC Partner also commenced production at its newly built factory in Batam, Indonesia, on November 14, marking a significant step in its regional growth.
Relocation signals shift amidst geopolitical tensions
Founded in 1997, PC Partner is renowned for assembling high-performance graphics cards, including popular brands like ZOTAC, Inno3D, and Manli. The decision to shift its base comes at a time of increasing pressure on businesses to reduce reliance on China. Heightened US-China trade tensions and restrictions on advanced semiconductor exports, such as Nvidia’s flagship GeForce RTX 4090 graphics processing units (GPUs), have disrupted supply chains.
US President-elect Donald Trump’s proposed 60 per cent tariffs on Chinese imports and anticipated challenges in accessing cutting-edge chips further underline the urgency for businesses like PC Partner to diversify their operations.
PC Partner’s move to Singapore and the new factory in Indonesia reflect a growing industry trend known as the “China+1” strategy. This approach encourages companies to establish production facilities outside China to mitigate risks associated with geopolitical uncertainties.
Strengthening Southeast Asian presence
The new factory in Batam, located near Singapore, reinforces PC Partner’s focus on Southeast Asia. According to Manli’s official WeChat post, the company aims to improve its business coverage and customer service in the region.
The secondary listing in Singapore is a strategic decision designed to capitalise on the city-state’s robust infrastructure and international appeal. Tony Wong Shik Ho, chairman and CEO of PC Partner, stated that the company plans to allocate additional resources to R&D and manufacturing in Singapore and its neighbouring markets.
The company has also hinted at converting its Singapore listing into a primary one, eventually seeing it delist from the Hong Kong Stock Exchange.
PC Partner’s strong ties with Nvidia were highlighted during its Singapore listing ceremony, where John Milner, Nvidia’s vice-president of worldwide GeForce sales, was present.
Solid financial growth despite challenges
Despite the challenges, PC Partner reported robust revenue of HK$4.94 billion (US$634.5 million) in the first half of 2024, an 18.4 per cent increase compared to the previous year. Strong sales of graphics cards primarily drove the rise.
While PC Partner’s shares in Hong Kong dropped 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), slightly lower than the opening price of 85 Singaporean cents.
The relocation and secondary listing highlight PC Partner’s commitment to expanding its global footprint and adapting to a rapidly changing technological and geopolitical landscape.
