Dell Technologies Inc is planning to stop using Chinese-made chips by next year and has told suppliers to reduce the amount of other made-in-China components in its products amid concerns over US-China tensions, the Nikkei reported yesterday.
The computer maker late last year told suppliers that it aims to meaningfully lower the amount of Chinese-made chips it uses, including those produced at facilities owned by non-Chinese chipmakers, the report added, citing three people with direct knowledge of the matter.
Dell has also asked suppliers of other components, such as electronic modules and print circuit boards, and product assemblers to help prepare capacity in countries beyond China, such as Vietnam, the report said.
Photo: AP
The report came after the US last month added Chinese memorychip maker Yangtze Memory Technology Corp (長江存儲) and 21 “major” Chinese players in the artificial intelligence chip sector to a trade blacklist.
In October last year, US President Joe Biden’s administration published a set of export controls that included a measure to cut China off from certain semiconductor chips made anywhere in the world with US tools.
PC maker HP Inc, one of Dell’s rivals, has also begun surveying its suppliers to gauge the feasibility of moving production and assembly away from China, the Nikkei reported.
Dell and HP did not immediately respond to a Reuters request for comment.
Separately, China’s Luxshare Precision Industry Co (立訊精密) yesterday said its cooperation with current clients was normal, in response to a media report that iPhone maker Apple Inc had asked suppliers to cut production.
The electronics manufacturer said it wanted to clarify a recent report from a Taiwanese media company that said Luxshare had suffered the biggest impact from the Apple request.
“There are no special changes or impact to the relevant business of the company mentioned in the report,” Luxshare said in a statement.
“Currently the company’s cooperation with existing customers is progressing normally and the business is moving forward in an orderly manner according to the work plan,” the company said.
Luxshare makes connector cables for iPhones and Macbooks, manufactures AirPods, and owns factories capable of making iPhones.
Apple had told suppliers to manufacture fewer components for its ear buds, watches and laptops as a sluggish global economy and high inflation might hurt demand for Apple devices, a report by the Nikkei said on Monday, citing unnamed suppliers.
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