Dell plans to stop using Chinese chips by 2024, according to Nikkei. This marks a major shift in its supply chain strategy.
Dell Technologies Inc. is planning to stop using China-made chips by 2024 and has asked suppliers to reduce the amount of other China-made components in its products. The computer maker has also requested suppliers to help prepare capacity in countries beyond China, like Vietnam. This comes after the U.S. added Chinese memory chipmaker YMTC and 21 Chinese AI chip sector companies to a trade blacklist in December 2022. Dell’s rival HP Inc. has also begun surveying its suppliers to gauge the feasibility of moving production away from China.