One of the world’s largest computer manufacturers intends to stop using
chips and semiconductors
produced in China by 2024, a meaningful decision as the Biden administration ramps up efforts to ensure a technological edge on
China
.
Dell, the world’s
third largest computer manufacturer
, told suppliers that it would cut back on the use of Chinese-manufactured chips,
according to
Nikkei Asia. The end goal will be to have all Dell chips, electronic modules, and circuit boards manufactured in non-Chinese plants by the end of 2024.
CHINA RAMPS DOWN SEMICONDUCTOR CHIP WAR WITH US
“The goal is quite aggressive. The determined shift involves not only those chips currently made by Chinese chipmakers but also at the facilities in China of non-Chinese suppliers,” one person involved in the matter said. “If suppliers don’t have responding measures, they could eventually lose orders from Dell.”
Dell isn’t the only manufacturer to pursue the ability to produce products outside of China. Hewlett-Packard is also surveying its suppliers to gauge the viability of a move away from Chinese plants.
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Dell leadership acknowledged efforts to diversify its supply chain but stressed that it intended to continue to serve China. “We continuously explore supply chain diversification across the globe that makes sense for our customers and our business,” the company said before acknowledging that “China is an important market where we have team members and customers to serve.”
The decision for Dell to diversify its market access arises as China and the United States continue to clash over their ability to manufacture chips required for advanced tech. The United States has passed legislation to fund semiconductor plants and
implemented export controls
to restrict Chinese access to domestic products. China, meanwhile, is
cutting back
on its investments into semiconductor development locally after seeing its local market fail to develop anything technologically superior to the U.S.
