Dell to reduce or stop using Chinese chips by 2024
It was reported that American technology company Dell plans to stop using Chinese chips by 2024, amid tensions in trade between the United States and China.
Dell Plans to Phase Out Chinese Chips from PCs by Next Year | Tom's Hardware
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 people familiar with the matter, the plan is a way to deal with problems that occur between the United States and China. The US government regards Huawei and ZTE, Chinese telecommunications equipment manufacturers, as ``risks in information communication,'' and is aiming to completely eliminate them from the country. As part of this, the Federal Communications Commission hasdesignated Huawei and ZTE as ``national security threats,'' preventing the introduction of Huawei and ZTE products with the subsidies that many operators use. In addition, there are sales restrictions on Chinese companies such as Hikvision, Hytera, and Dahua. According to people involved, Dell's ultimate goal is to stop using Chinese chips by 2024, and has indicated that it intends to significantly reduce Chinese chips ahead of this. It also reportedly plans to move about 50% of its production out of China by 2025.
Commenting on the report, an executive at a chipmaker that supplies chips to both Dell and HP said, 'There are thousands of parts in a laptop, and the parts sourcing ecosystem has matured and perfected in China for years. We've known for some time that Dell has plans to move away from China, but this time it's a bit radical, Dell doesn't even want to make chips in China, and it's an irreversible trend. It seems so,' he said.
Many electronic devices distributed around the world are made by collecting parts manufactured by various companies, so it is not easy to replace all chips made in China from all products. Apple and others are trying to diversify risks by planning to move manufacturing bases to India in view of supply chain disruptions and the impact of factory lockdowns, but a full-fledged supply chain that has already been built in China Various issues remain, such as how to break down the industry and how to secure personnel.
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