Computing giant Dell reportedly plans to phase out all computer chips made by China by 2024. The company is also informing suppliers that they should shift their production out of China — or risk losing Dell as a customer.
Nikkei Asia reports that Dell has told its suppliers to significantly reduce the number of components in its products that are “made in China” in an effort to diversify its supply chain as concerns over tensions between the US and China grow in the tech community. According to sources, the company has also informed its suppliers that it aims to stop using chips made in China by 2024. Dell reportedly plans to manufacture all chips used in its products in plants outside of China by 2024.
The ongoing tech war between the U.S. and China has been accelerating electronics makers’ efforts to diversify production away from China in recent months. This is no small task given that much overseas manufacturing has been based out of China for decades. “The goal is quite aggressive,” said one person with direct knowledge of the matter. “The determined shift involves not only those chips that are currently made by Chinese chipmakers but also at the facilities in China of non-Chinese suppliers. If suppliers don’t have responding measures, they could eventually lose orders from Dell.”
Dell has reportedly asked suppliers of other electronic components and product assemblers to help coordinate and prepare capacity in countries beyond China, including Vietnam. Previously, computer makers such as Dell and HP bought chips from chip developers without worrying about where they were manufactured. The change of attitude has taken some in the industry by surprise. …full story
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