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

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

The news comes after the US added Chinese memory chip maker YMTC and 21 “major” companies in the country’s AI chip sector to a trade blacklist in December.

Computer maker HP Inc (HPQ.N)Dell’s competitor also began surveying its suppliers to gauge the feasibility of moving production and assembly away from China. Transfer He said, quoting sources familiar with the matter.

The report said Dell has also asked product assemblers and suppliers of other components such as electronic modules and printing circuit boards to help prepare capacity in countries outside of China, such as Vietnam.

“We are constantly exploring diversifying supply chains around the world that make sense for our customers and our business,” Dell said in a statement.

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

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

Additional reporting by Kanjik Ghosh in Bengaluru, with additional reporting by Tyachi Datta. Editing by Janan Venkatraman and Devika Syamnath

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