Dell technologies aims to phase out Chinese chips by 2024: Reports

By Al Mayadeen English
Source: Agencies
5 Jan 2023 13:21

Amid rising tensions between China and the United States, reports reveal that Dell Technologies aims to stop using Chinese-made CPUs by 2024.

Semiconductor chips seen on a circuit board of a computer (Reuters)

Dell Technologies Inc (DELL.N) aims to stop using Chinese-made CPUs by 2024 and has instructed suppliers to cut the number of other made-in-China components in its products, Nikkei reported.

In further detail, the computer maker warned suppliers late last year that it plans to significantly reduce the number of China-made chips it uses, including those created at facilities controlled by non-Chinese chipmakers, the report added citing three people with direct knowledge of the situation.

The move is part of the company's efforts to diversify its supply networks amid concerns about tensions between China and the United States.

The report also eviscerated that the computer maker reportedly pushed suppliers of key components to enhance manufacturing in other nations, such as Vietnam.

In a similar context, the United States imposed back in October sanctions aimed at undermining China's flourishing semiconductors industry. Washington took the decision to ban companies from exporting chips to China, the equipment needed to manufacture them, as well as any sort of semiconductor expertise, RealClear Defense reported a month ago.

Semiconductors, more commonly known as chips, are a highly pivotal component in the defense industry, especially as it shifts and takes a more modern approach that delves into the futuristic realms requiring advanced semiconductors, which are key in manufacturing many things, from computers to autonomous vehicles, and even hypersonic weapons. The Biden administration hoped that with step it would jeopardize China's advancement and push it back years into the past at a level not adequate with that of this time.

This is happening as global shortages of computer chips, prompted by the coronavirus pandemic and the conflict in Ukraine, have caused production delays on a global scale for technology companies and other manufacturers.

In addition, the industry has gained increased geopolitical prominence as the US threatens global supply chains and hampers international trade with its revengeful policies against China.