TAKEAWAYS
THE PUSH FOR DIVERSIFICATION A combination of factors has prompted companies in the technology industry to seek production diversification away from China. While the idea of shifting to new sourcing locations started when Chinese factories were locked down during the pandemic, it has continued to gain steam due to escalating trade tensions between the West and China, as well as China’s gradually increasing labor costs. Several countries are experiencing increasing demand for production due to these supply chain shifts, finds a new analysis by Everstream Analytics using sets of 2019-2024 supplier data from the world’s largest technology companies. Despite the increased interest in nearshoring, Everstream’s analysis shows U.S. companies such as Apple have kept the largest share of their suppliers in Asia. Thailand has shown the most significant percentage increase, followed closely by Vietnam and India ( see chart below ). While China still maintains the largest absolute number of suppliers, the trend line clearly indicates a gradual diversification away from complete dependence on Chinese manufacturing. Here are the new hotspots, according to the Everstream data: India: A fast-growing hub for smartphone and laptop manufacturing, India oers a large, skilled workforce at lower labor costs. Its expanding tech capabilities and strong domestic market have lured major players like Apple and Samsung. Malaysia: Known for its role in semiconductor packaging and testing, Malaysia combines low- cost labor with solid infrastructure and government support, making it vital to the global chip supply chain. Vietnam & Thailand: Both countries oer tax incentives and government funding for tech manufacturing. Vietnam leads in smartphone and laptop production, while Thailand specializes in smartwatches and computers—each benefiting from proximity to China with lower costs and risk. Taiwan: Despite geopolitical concerns, Taiwan remains a critical player in high-end electronics, thanks to its unmatched semiconductor ecosystem led by TSMC and deep technical expertise. HOTSPOTS: Avg % change in supplier locations across major technology companies by country, 2019-2024 # of Factories % Change 2019 2024 2019-2024 China & HK 615 542 -12% Japan 152 131 -14% South Korea 93 121 30% Taiwan 91 108 19% U.S. 106 104 -2% Vietnam 46 90 96% Thailand 27 54 100% Malaysia 34 51 50% Singapore 36 45 25% Philippines 27 31 15% India 13 24 85% Brazil 13 15 15% Mexico 14 15 7% Source: Everstream Analytics
WHICH COMPANIES OPERATE THE BEST SUPPLY CHAINS? Uncertainty continues to shape the global supply chain landscape, but the companies topping Gartner’s 2025 Global Supply Chain Top 25 are thriving nonetheless. Schneider Electric leads the pack for the third year in a row, with red-hot chip maker NVIDIA moving up to second place in just its second year on the list (it debuted on last year’s list at number seven). Cisco Systems, AstraZeneca, and Johnson & Johnson round out the top five. The annual ranking highlights organizations that demonstrate superior supply chain capabilities and deliver long-term value. This year’s list reflects continued investment in digital transformation, with leaders leveraging agentic AI, data, and automation to gain visibility and agility across their networks. A focus on resource stewardship—and specifically on water management and conservation initiatives—is another key trend displayed by these firms. Here are the top 25 companies on Gartner’s list:
1. Schneider Electric 2. NVIDIA 3. Cisco Systems 4. AstraZeneca 5. Johnson & Johnson 6. L’Oréal 7. Colgate-Palmolive 8. Lenovo
13. Walmart 14. Coca-Cola
15. Siemens 16. Novartis 17. General Mills 18. PepsiCo 19. Heineken
20. HP Inc. 21. Sanofi 22. JD.com 23. BMW
9. Microsoft 10. Danone 11. Nestlé 12. Diageo
24. GSK 25. Intel
July 2025 • Inbound Logistics 27
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