Personal computer (PC) giant Dell Technologies plans to stop using China-made semiconductors by 2024 and urged its suppliers to cut down on components sourced from that country amid concerns over escalating tensions between Beijing and Washington.
That initiative by Dell, which was ranked by research firm IDC as the world’s third-largest PC vendor in the third quarter last year, forms part of the Texas-based company’s efforts to diversify its manufacturing supply chain outside China, according to a report on Thursday by Nikkei Asia, which cited people with direct knowledge of the matter.
Dell’s goal is to have all of the chips used in its products, including those produced by foreign suppliers in China, to be sourced from outside the country by 2024, the report said.
Dell is also expected to move about 50 per cent of its production out of the world’s second-largest economy by 2025, according to a separate report by Taiwanese financial newspaper Commercial Times.
A Dell Technologies office building is seen at the US computer giant’s main campus in Round Rock, Texas, on January 4, 2023. Photo: Getty Images via Agence France-Presse
