Dell plans to phase out chips made in China by 2024 – Nikkei

Jan 5 (Reuters) – Dell Technologies Inc (DELL.N) plans to stop using chips made in China by 2024 and has asked its suppliers to reduce the amount of other Chinese-made components in its products by because of concerns about tensions between the United States and Beijing. , the Nikkei reported on Thursday.

The news comes after the United States added Chinese memory chip maker YMTC and 21 “big” AI chip companies in the country to a trade blacklist in December.

PC maker HP Inc (HPQ.N), one of Dell’s rivals, has also started surveying its suppliers to assess the feasibility of moving production and assembly out of China, the report said, citing sources. knowing the subject.

Dell has also asked product assemblers and suppliers of other components such as electronic modules and printed circuit boards to help prepare capacity in countries other than China, such as Vietnam, according to the report.

“We continuously explore supply chain diversification across the globe that makes sense for our customers and our business,” Dell said in a statement.

HP did not immediately respond to a request for comment from Reuters.

In October last year, the Biden administration released a package of export controls that included a measure to cut China off from certain semiconductor chips made anywhere in the world with American tools.

Reporting by Kanjyik Ghosh in Bengaluru, additional reporting by Tiyashi Datta; Editing by Janane Venkatraman and Devika Syamnath

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