Earn from 0.001 to 0.5 bitcoin!
Earn bitcoin easily. Invite partners and earn from 0.001 to 0.5 bitcoin. Get from 5% to 70% in bitcoins from your investment partners. Sign Up - Register

You can see previous news in the old version of the news blog. Watch

Dell intends to completely get rid of Chinese chips in its products by 2024.

Published: 2023-01-05

Against the background of the trade war unleashed by Washington with China, the American computer manufacturer Dell intends to completely abandon the use of Chinese-made chips by 2024 and has already strongly recommended that suppliers significantly reduce the number of components used in China.

The company told partners late last year that it intends to "significantly reduce" the use of Chinese-made chips, including in factories not owned by Chinese companies, according to the Nikkei Asian Review. This is a very clear example of how pressure from the US authorities is forcing us to diversify production in Asia, even if there was no need to do so before. However, according to one source, if Dell suppliers are unable or unwilling to stop using Chinese components, they may lose orders from Dell, which is one of the largest computer manufacturers in the world.

Sources say that the trend to abandon the Chinese seems to be "irreversible" in nature. It is known that Dell has already asked manufacturers of other components (including printed circuit boards, electronic modules and even assembly devices) to help by organizing the "relocation" of their businesses to countries like Vietnam. It is known that Dell's competitor, HP, also began to interview suppliers, asking them to evaluate the feasibility of moving production and assembly from China.

Companies like Dell and HP used to buy chips without worrying too much about their origins, according to the Nikkei, but current political trends dictate otherwise, taking some businesses by surprise. Sources say that thousands of components are manufactured in China and the transfer of businesses is unlikely to be an easy process, and Dell's transition turned out to be too radical. Dell shied away from direct answers, telling reporters that they are constantly considering diversifying their supply chains and "China is an important market where many team members and customers are located."

Washington is doing its best to harm the Chinese semiconductor sector under the pretext of ensuring national security. Some tough export regulations on China were announced in October, and as early as November, leading Chinese manufacturer SMIC reported that many customers were hesitant to place orders with the company as the situation escalated. At the end of December, the US imposed new sanctions against the Chinese semiconductor sector, this time affecting even low-profile companies.

This only added further impetus to the desire of many businesses to get rid of Chinese components that they have been ordering for literally decades. It is noteworthy that Dell and HP produce most of the laptops in the Chinese provinces, but are unlikely to change the determined desire of the US authorities to literally crush the Chinese high-tech industry amid growing geopolitical tensions.

According to Counterpoint analysts, in the next 5-10 years, many production bases will appear outside of China, in particular in India, Southeast Asia and Latin America. It will start with the assembly, but in the future it will reach the production of a significant number of components. Although it will take a long time, the trend is indeed quite clear.