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Dell to Stop Using China-made Chips by 2024: Nikkei

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Yusuf Balogun
Yusuf Balogun
Yusuf is an aspiring Journalist and Health law expert with a special focus on technology innovations. He is a writer at Right for Education, Libertist Centre for Education, Qwenu, and Editor at Gamji Press, UDUS.

Nikkei reported today that the American-based technology company, Dell Technologies Inc., has revealed plans to stop using China-made chips by 2024. The firm ordered its suppliers to reduce the amount of other made-in-China components in its products amid concerns over U.S.-Beijing tensions.

Over the last few years, the feud between the United States and China over chip shipping has resulted in a global chip shortage. Late last year, Dell told its suppliers about its aims to meaningfully lower the amount of China-made chips it uses, including those produced at facilities owned by non-Chinese chipmakers.

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However, in the third quarter of 2022, Dell delivered more than 1.5 million PCs in mainland China, taking the top spot and accounting for around 11.7% of the market, according to research data previously made public by the market research firm Canalys, the second in the sector, just behind Lenovo’s 38.2%.

In the meantime, it is clear that the computer tech giant has a significant impact on the Chinese market. Recently, reports from CNMO indicated that Dell has a sizable portion of the Chinese market and appears to be preparing to stifle the sale of Chinese chips.

Dell Delays Using China-made Chips

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According to Nikkei, Dell has apparently decided to delay using China-made chips in its devices until 2024 and has also instructed its suppliers to do the same. Dell’s objective is to dramatically minimize the use of chips made in China, according to three people familiar with the situation who was quoted in the paper. In fact, Dell alerted its partners of the pertinent requirements as early as the end of 2022.

Additionally, Dell is currently active in the server, data storage, and network equipment markets and producing computers. However, according to information from the company’s official financial reports, Dell’s sales in the third fiscal quarter of the 2023 fiscal year was US$24.7 billion, a 6% decline from the same quarter in the previous year.

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