Dell to phase out Chinese chips

Dell will stop using semiconductor chips made in China by 2024, because it fears that relations between the middle kingdom and the land of the fee might worsen.

According to Nikkei, the company told suppliers that it wants to “meaningfully lower” the quantity of other Chinese-made parts in its devices.

Dell has said: “To best meet our customers’ and partners’ needs and expectations, we have geographic diversity, flexibility and stability built into our global supply chain. China is an important market where we have team members and customers to serve. We continuously explore global supply chain diversification that makes sense for our customers and our business.”

Dell’s rival computer maker, HP, is exploring ways to move its chip supply away from China too, however Dell seems to be moving faster.

“The goal is quite aggressive. 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,” one person with direct knowledge of the matter told Nikkei. “If suppliers don‘t have responding measures, they could eventually lose orders from Dell.”