So Much Winning: According to multiple analysts, Donald Trump introduced his unprecedented tariff plan in an effort to force manufacturers to return to the US. If that was truly the goal, the tariffs ended up being instrumental in achieving the exact opposite outcome.

The so-called “reciprocal tariffs” imposed by the Trump administration could push major PC manufacturers to find new production hubs, and it likely won’t be in the US. Earlier this month, laptop makers were already forced to halt shipments to the US due to tariff-related uncertainty and logistical chaos. Now, some of the world’s largest PC brands appear to be eyeing Saudi Arabia as their next manufacturing base.

According to a recent report by DigiTimes, Lenovo, HP, and Dell are actively exploring new manufacturing initiatives in the Middle Eastern kingdom. Lenovo publicly announced its plans earlier this year, stating that the move is part of a broader strategy to diversify operations and gain privileged access to markets in the Middle East and Africa.

Lenovo’s initiative is backed by a $2 billion investment from Saudi Arabia’s Public Investment Fund, a massive $620 billion fund aimed at transforming the kingdom’s economy beyond its dependence on fossil fuels. PIF is also expected to play a role in supporting HP and Dell’s potential relocations, although progress on those fronts has been slower.

The two US-based OEMs have dispatched teams to Saudi Arabia after being approached by local government authorities. These scouting teams are tasked with assessing the situation on the ground and identifying potential sites for new manufacturing facilities. Sources indicate the new plants would likely be located near Riyadh, the capital of Saudi Arabia.

In addition, Riyadh officials have extended invitations to several original design manufacturers including Foxconn, Quanta, Wistron, Compal, and Inventec. These companies are capable of both designing and manufacturing their own products and typically require specific industrial conditions to meet their production goals. To attract OEMs and ODMs, Saudi Arabia is offering a range of exclusive incentives including covering the full cost of constructing the new facilities.

Relocating to Saudi Arabia could offer manufacturers strategic advantages amid current global economic volatility. While Donald Trump has imposed a steep 245 percent tariff on imports from China, Saudi Arabia faces a relatively modest 10 percent reciprocal tariff. For OEMs, improved access to Middle East and African markets is an appealing proposition, while ODMs may also leverage existing operations in Mexico to circumvent US tariffs altogether.