Dell will stop using all chips from China

by nativetechdoctor
2 minutes read

The US computer giant’s goal is that by 2024 all the chips used in its products will be manufactured in factories outside of China.

made semiconductors by According to a report from Nikkei on Thursday, Dell Technologies plans to stop using Chinese 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 the Taiwanese financial newspaper Commercial Times, the US computer company also plans to move about 50% of its production out of the mainland by 2025.

war The above issue shows that the technology between Beijing and Washington, along with various production disruptions in China, has prompted global tech brands like Dell to expand their supply chain networks. they are in other places. Apple is expected to move some MacBook production to Vietnam.

China’s chip imports also recorded their steepest decline in 2022 in the 11 months that ended Nov. 30, as manufacturing disruptions and economic difficulties continue to weigh on the economy’s productivity second largest economy in the world.

Dell started selling directly to China in 1995 and started selling PCs to local retailers in 2007. The company now has certain laptop models assembled in the mainland by manufacturers. produced under an electronic contract.

While emphasizing China’s importance as a major market, Dell remains committed to pursuing diversification of the global supply chain “to best meet the needs and expectations of our customers and partners”. According to a Nikkei report, Dell has asked component suppliers, including printed circuit board and module manufacturers, to increase production capacity in countries like Vietnam.

Most major PC brands usually source components from suppliers based in Taiwan and Korea. The top three US PC brands, including Dell, HP, and Apple, depend 90% on Taiwanese companies for components.

Dell was China’s second-largest PC supplier in the third quarter of 2022, shipping 1.53 million units, accounting for 11.7% of the market share, according to a report published by technology research firm Canalys in June. December 2022. Lenovo Group leads the mainland market, with shipments of nearly 5 million units, accounting for 38.2% of the market share in the same period.

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