Dell wants to cut out Chinese-made chips

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Dell has announced plans to phase out chips made in China from its machines by 2024 in a move that could to have major repercussions across the wider tech industry. 

A person familiar with the matter told Nikkei Asia (opens in new tab): “The determined shift involves not only those chips that are currently made by Chinese chipmakers but also at the facilities in China of non-Chinese suppliers”.

According to recent Canalys figures, Dell accounted for 26.1% of Q3 2022 US desktop, notebook and workstation shipments, placing it in pole position ahead of HP (22.7%) and Apple (16.7%).

Dell in China

Speculations cite growing concerns over the security and reliability of Chinese-made chips, which have only accelerated amid tension between China and the US.

Dell’s decision to reduce its reliance on ‘made in China’ chips is part of a broader trend among tech companies, where a general sentiment to diversify supply chains has been felt. 

It has also been reported that HP is drawing up plans that involve reducing its reliance on single countries for manufacturing large proportions of its components, including China.

In an effort to further expand manufacturing, the sources claim that Dell is also asking suppliers of other components and even product assemblers to prepare for a shift to other countries, such as Vietnam.

Dell told Nikkei Asia that, “to best meet [its] customers’ and partners’ needs and expectations, [it has] geographic diversity, flexibility and stability built into [its] global supply chain”, and that it “continuously explore[s] supply chain diversification across the globe that makes sense for [its] customers and [its] business”.

TechRadar Pro has reached out to Dell and a handful of other computer companies for further comment on the reduction of Chinese supply chains.

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