Chinese Chips To Be Phased Out In 2024 By Dell

The leading global tech company Dell will discontinue the usage of computer chips manufactured in China starting in 2024.

With the FBI reportedly investigating the Chinese cell phone company Huawei, Dell is taking no chances as the company seeks to diversify its supply chain. The investigation is based on Huawei’s alleged manufacturing of devices capable of interfering with the Department of Defense’s communications involving nuclear weapons.

Business, Politics, Economic, and Tech news giant Nikkei Asia has reported that aside from computer chips, suppliers have been informed by Dell to “meaningfully lower” their reliance on Chinese-produced chips.

Regardless of whether non-Chinese people own the facilities used, this warning applies to all suppliers that use chips made in China. Dell’s new policy results from the strained relationship between the U.S. and China as the U.S.-based tech giant continues to depend on China’s economy.

A source with direct knowledge of the matter told Nikkei Asia that suppliers could potentially be put out of business with Dell if they refuse to comply with the new policy.

“The goal is quite aggressive,” the source said. “The determined shift involves not only those chips that are currently made by Chinese chip makers but also at the facilities in China of non-Chinese suppliers. If suppliers don’t have responding measures, they could eventually lose orders from Dell.”

Reports also suggest Dell may not be the only tech manufacturer deciding on China-made chips. Hewlett-Packard (HP), another big name in the tech manufacturing industry, is also looking to tow the same line.

A top member of a chip supplier that works with both Dell and HP has labeled Dell’s latest move as fundamental, describing it “kind of radical.”

“Previously, we knew Dell kind of had plans to diversify from China, but this time it is kind of radical. They don’t even want their chips to be made in China, citing concerns over the U.S. government’s policy. It’s not just an evaluation. It’s not crying wolf. It’s a real and ongoing plan, and this trend looks irreversible,” Breitbart News reported, calling it a “Win for America.”

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