- Dell wants all of the chips used in its products, including those made by foreign suppliers in China, to be sourced from outside the country.
- Dell reportedly also plans to move about 50 per cent of its production out of China by 2025.
Dell plans to stop using semiconductor components made in China from 2024
According to a report from Nikkei on Thursday, Dell Technologies plans to stop using Chinese-made semiconductors by 2024. The company also urged its suppliers to cut back on components sourced from China due to concerns about escalating tensions between Beijing and Washington.
Dell wants all chips used in its products, including those made by foreign suppliers in China, to be sourced from abroad. According to a report by Commercial Times-Taiwanese financial newspaper, the US computer company also plans to move about 50% of its production out of the mainland by 2025.
The Chinese market gradually becomes less attractive, technology companies turn to developing countries
China’s chip imports also recorded their steepest drop last year in the 11 months ended November 30, as disruptions in manufacturing activity and economic headwinds continue to weigh on the country’s productivity.
The technology war between Beijing and Washington, along with many production disruptions in China, has prompted high-tech electronics companies like Dell to take it more seriously, many analysts have said when implementing a plan to build alternative factories outside of China. Developing countries in Southeast Asia and Latin America will be new markets to build factories to manufacture or assemble key products.
Dell, according to the Nikkei Asia report, has asked its components suppliers, including those that make printed circuit boards and modules, to bolster their production capacity in countries like Vietnam.
Nguyen Thach Thao