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US computer giant Dell to replace all China-made chips in its products by 2024 amid tensions between Beijing and Washington
- Dell wants all of the chips used in its products, including those made by foreign suppliers in China, to be sourced from outside the country
- Dell reportedly also plans to move about 50 per cent of its production out of China by 2025
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Personal computer (PC) giant Dell Technologies plans to stop using China-made semiconductors by 2024 and urged its suppliers to cut down on components sourced from that country amid concerns over escalating tensions between Beijing and Washington.
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That initiative by Dell, which was ranked by research firm IDC as the world’s third-largest PC vendor in the third quarter last year, forms part of the Texas-based company’s efforts to diversify its manufacturing supply chain outside China, according to a report on Thursday by Nikkei Asia, which cited people with direct knowledge of the matter.
Dell’s goal is to have all of the chips used in its products, including those produced by foreign suppliers in China, to be sourced from outside the country by 2024, the report said.
Dell is also expected to move about 50 per cent of its production out of the world’s second-largest economy by 2025, according to a separate report by Taiwanese financial newspaper Commercial Times.
These reports indicate how the tech war between Beijing and Washington, along with various manufacturing disruptions on the Chinese mainland, have prodded global brands like Dell to expand their supply chain networks elsewhere.
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Apple is reportedly relocating some production of MacBooks to Vietnam, a move that has been planned since 2020, with the initial batch of its popular laptop computers expected to roll out from the Southeast Asian country as early as May this year.
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