Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Dell looks to phase out China-made chips by 2024 - Nikkei

Published 01/04/2023, 10:14 PM
Updated 01/05/2023, 11:51 AM
© Reuters. FILE PHOTO: Dell logos are seen at its headquarters in Cyberjaya, outside Kuala Lumpur in this September 4, 2013 file photo. REUTERS/Bazuki Muhammad/Files

© Reuters. FILE PHOTO: Dell logos are seen at its headquarters in Cyberjaya, outside Kuala Lumpur in this September 4, 2013 file photo. REUTERS/Bazuki Muhammad/Files

(Reuters) -Dell Technologies Inc plans to stop using China-made chips by 2024 and has told suppliers to reduce the amount of other made-in-China components in its products amid concerns over U.S.-Beijing tensions, the Nikkei reported on Thursday.

The news comes after the United States added Chinese memory chipmaker YMTC and 21 "major" companies in the country's artificial intelligence chip sector to a trade blacklist in December.

PC maker HP Inc (NYSE:HPQ), one of Dell's rivals, has also started surveying its suppliers to gauge the feasibility of moving production and assembly away from China, the report said, citing sources with knowledge of the matter.

Dell has also asked product assemblers and suppliers of other components such as electronic modules and print circuit boards to help prepare capacity in countries beyond China, such as Vietnam, the report said.

"We continuously explore supply-chain diversification across the globe that makes sense for our customers and our business," Dell said in a statement.

© Reuters. FILE PHOTO: Dell logos are seen at its headquarters in Cyberjaya, outside Kuala Lumpur in this September 4, 2013 file photo. REUTERS/Bazuki Muhammad/Files

HP did not immediately respond to a Reuters request for comment.

In October last year, the Biden administration published a set of export controls that included a measure to cut China off from certain semiconductor chips made anywhere in the world with U.S. tools.

Latest comments

I guess, Dell will also stop selling computers in China in 2024.
Midwest corn chips dusted with Nantucket sea salt also werks
Wise.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.