Dell to reduce and stop using Chinese chips by 2024



Amid rising trade tensions between the US and China, American technology company Dell is reportedly planning to stop using Chinese-made chips by 2024.

Dell Plans to Phase Out Chinese Chips from PCs by Next Year | Tom's Hardware

https://www.tomshardware.com/news/dell-plans-to-phase-out-chinese-chips-from-pcs-by-2024

US computer giant Dell to replace all China-made chips in its products by 2024 amid tensions between Beijing and Washington | South China Morning Post
https://www.scmp.com/tech/big-tech/article/3205740/us-computer-giant-dell-replace-all-china-made-chips-its-products-2024-amid-tensions-between-beijing

According to a source familiar with the issue, the plan is a response to problems between the United States and China. The U.S. government considers Chinese telecommunications equipment manufacturers Huawei and ZTE to be dangerous as they pose 'information and communications risks' and aims to completely eliminate them from the country. As part of this, the Federal Communications Commissiondesignated Huawei and ZTE as 'national security threats' and made it impossible for many businesses to use subsidies to introduce Huawei and ZTE products. In addition, sales restrictions are being imposed on Chinese companies such as Hikvision, Hytera, and Dahua. According to a source, Dell's ultimate goal is to stop using Chinese chips by 2024, and it has expressed its intention to significantly reduce Chinese chips in stages ahead of this. In addition, it was reported that the company also plans to move about 50% of its production outside of China by 2025.



Regarding the reports, an executive at a chipmaker that supplies chips to both Dell and HP said, 'There are thousands of components in a laptop, and the component sourcing ecosystem has been mature and complete in China for years. We've known for some time that Dell had plans to move away from China, but this is a bit extreme. Dell doesn't even want to manufacture chips in China, and this trend seems irreversible.'

Many of the electronic devices distributed around the world are made from parts manufactured by various companies, so it is not easy to replace all chips made in China from all products. Apple and other companies are trying to diversify risks by planning to move their manufacturing bases to India in light of the disruption of the supply chain and the impact of factory lockdowns, but various challenges remain, such as how to break down the full-scale supply chain already established in China and how to secure personnel.

in Hardware, Posted by log1p_kr