Plus One or Minus All…

Remember when China+1 was the go-to strategy for supply chain diversification? That was the plan for years—until the landscape shifted. Now, it’s all about Vietnam+1.

With Trump back in the picture and global tensions escalating, manufacturers aren’t just hedging bets; they’re restructuring supply chains for resilience. Vietnam remains a key electronics hub, but rising costs, infrastructure bottlenecks, and geopolitical risks are pushing companies to rethink their strategies—again.

So, what’s next? Who’s stepping up as the next major manufacturing destination?

Vietnam’s Manufacturing Boom: A Blessing or a Bottleneck?

Vietnam has attracted billions in investments from tech giants like Samsung, Foxconn, and Intel. It’s been a success story in electronics manufacturing, but rapid growth has introduced major challenges:

• Rising labor costs—Vietnamese wages have increased over 50% in the past decade, reducing its cost advantage. According to McKinsey & Company, Vietnam is transitioning from a low-cost manufacturing hub to a higher-productivity economy, requiring greater investment in efficiency and automation.
• Infrastructure bottlenecks—Ports, power grids, and transportation networks are struggling to keep up with demand.
• Skilled labor shortages—High demand for workers is outpacing the supply of trained talent.
• Geopolitical uncertainty—U.S.-China tensions, tariffs, and shifting policies add unpredictability to long-term investments.

Recent tariff changes are also influencing decisions, as manufacturers assess how new trade policies will impact tech supply chains. For a deeper analysis, check out How Tariffs Are Reshaping Tech Supply Chains in 2025.

Where Are Tech Companies Shifting Their Supply Chains?

Instead of looking for a single replacement for Vietnam, companies are moving toward multi-country supply chain strategies to balance cost, risk, and efficiency.

1. Thailand: A Safe Bet with a Well-Oiled Supply Chain

• Well-established electronics industry with decades of experience.
• Major players: Western Digital, Seagate, Sony.
• Challenges: Rising labor costs, increasing competition.

2. Malaysia: The Silent Giant of Semiconductors

• Critical hub for global semiconductor supply chains, handling 13% of the world’s chip testing and packaging.
• Major players: Intel, AMD, Infineon.
• Malaysia is the sixth-largest semiconductor exporter, covering 13% of the global market.

3. India: The Billion-Dollar Bet on Self-Reliance

• Over $10 billion in government incentives to boost semiconductor and electronics manufacturing (Reuters).
• Major players: Apple, Samsung, Foxconn.
• Challenges: Infrastructure bottlenecks, complex bureaucracy.

4. Latin America: The Unexpected Contender in Nearshoring

• Key players: Mexico, Colombia, and Brazil.
• Mexico’s trade agreements like USMCA give it a strong competitive edge.
• Explore different nearshoring strategies in our guide: Nearshoring vs. Rightshoring: Which Manufacturing Strategy is Best?

The Future of Tech Manufacturing: Multi-Country Supply Chains

• Vietnam isn’t being replaced outright, but companies are spreading risk across multiple regions.
• Cost isn’t the only priority anymore—companies now consider logistics, market proximity, and geopolitical safety.
• The future belongs to flexible, multi-country supply networks that adapt to changing global conditions.

Looking for Manufacturing Solutions?

At Titoma – The Time to Market Company, we specialize in electronics design and manufacturing solutions, helping companies build reliable, scalable, and cost-effective supply chains across Asia and Latin America.

Looking to discuss your next manufacturing move? Get in touch with our team today.