PC maker Dell has decided to stop sourcing the chips used in its products from China before the end of 2024.
As Nikkei Asia reports, according to three people with direct knowledge of the matter, the decision is in response to ongoing tensions between the US and China. On top of that, US sanctions limit China's access to the latest semiconductor manufacturing hardware and create an uncertain future for the technology sector in the country.
Dell's aim to no longer source chips from within China extends to its suppliers, who the company is urging to "significantly reduce" the components they source from China, too. If they don't, they could lose orders from Dell.
As Dell is currently the world's third-largest PC vendor, that could have a huge impact on the order books of Chinese companies supplying the thousands of different components desktop PCs and laptops use. Dell also manufactures servers, networking equipment, and a wide range of peripherals.
When asked to confirm its plans, Dell said, "We continuously explore supply chain diversification across the globe that makes sense for our customers and our business ... China is an important market where we have team members and customers to serve."
The move away from China isn't just limited to components, though. As the South China Morning PostSouth China Morning Post reports, Taiwanese financial newspaper Commercial Times believes Dell is also planning to move 50% of its production out of China by 2025. Most likely that means Dell would continue to manufacture PCs for China within China, but move to other locations for manufacture products sold elsewhere in the world.