Asia: Production relocations tied to risk, cost, and energy dynamics
Asia has been at the heart of global manufacturing for decades. It has been valued for low costs, large-scale production, and established supply chains. Lately, that picture is starting to change. Companies are paying closer attention to operational risk, geopolitical tension, energy reliability, and logistics when deciding where to produce.
The tech supply chain gives a clear example. Some Taiwanese suppliers working with companies like SpaceX have shifted parts of their production outside Taiwan, including to countries such as Vietnam and Thailand. These moves are tied to concerns over geopolitical risk and the need to keep supply chains moving.
Apple has also been spreading its production. Some iPhone assembly has moved from China to India in response to tariffs, geopolitical uncertainty, and the need for stronger supply-chain resilience. Reuters reported that Foxconn, Apple’s main supplier, planned a $1.5 billion investment in its India unit in 2025. Reuters also reported that Apple airlifted roughly $2 billion worth of iPhones from India to the United States in March 2025 as tariff concerns grew.
Samsung Electronics offers another example. Vietnam has become a major base for Samsung’s electronics operations. Reuters reported in 2026 that Samsung had committed more than $23 billion in Vietnam and was planning a new $1.5 billion chip testing plant there.
The pattern is hard to miss: companies now want locations that offer stability, power, and continuity.
Competitive labor costs still matter, but they are no longer enough by themselves.
For employees, these movements are not abstract. A factory expansion in one country brings thousands of livelihoods. A delayed project elsewhere means fewer openings for young workers. For HR leaders, this makes workforce planning harder because talent strategy now has to move together with risk, infrastructure, and business continuity planning.
A blunt reality: Talent is no longer enough
Here’s the blunt truth: skills still matter, but energy and systemic risks now matter more than many leaders used to admit.
For people managers, this shift changes the job. Energy instability is no longer only an operations problem. It affects recruitment, retention, employee welfare, remote-work arrangements, overtime decisions, and long-term skills planning. A company cannot promise stable work if its operations are always exposed to unstable power and supply risks.
A highly skilled workforce takes years to train and develop. Reliable energy and resilient supply chains also take years to build. Companies are now choosing locations not only for talent, but for continuity.
From my perspective in Southeast Asia, this trend has real implications. For the Philippines, the challenge is clear. We have talent, English proficiency, adaptability, and a young workforce. But these strengths have to be supported by reliable power, better infrastructure, and future-ready skills.
That is the part that should concern us. Talent gets attention, but infrastructure decides how far that talent goes.
If those foundations improve, the country will be in a stronger position to compete not only for routine outsourced work, but also for higher-value jobs in manufacturing, digital services, logistics, analytics, and technology-enabled industries.
The lesson from recent wars and energy shocks is direct: stability is no longer something countries should assume. It has to be built, protected, and connected to workforce planning.
This is why government, employers, schools, and HR professionals should treat energy security as part of workforce strategy. The discussion should not stop at power supply. It should include reskilling, regional job creation, fair transition plans, employee protection during business disruptions, and policies that help companies grow without leaving workers behind.
The next phase of globalization will not be decided by talent alone. Energy security, reliable infrastructure, and supply-chain resilience are now central to where companies choose to invest.
Silicon Valley grew because ideas found the right environment to scale. The next economic hubs will grow in places where talent has the power, roads, systems, and stability needed to keep work moving.
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For questions, kindly email him at nicasio.pimentel@antiquespride.edu.ph./PN
