World's third-largest computer part maker by shipments, Dell, plans to stop using China-made chips by 2024 and has told suppliers to reduce the amount of other made-in-China components in its products as part of efforts to diversify its supply chain, according to a Nikkei report.
The move by the US PC maker by shipments comes amid concerns over Washington-Beijing tensions in what is the latest example of how the tech war between the U.S. and China is accelerating electronics makers' efforts to diversify production away from Asia's biggest economy.
The computer maker had told suppliers late last year that it aims to meaningfully lower the amount of China-made chips it uses, including those produced at facilities owned by non-Chinese chipmakers, the report added.
In addition to chips, 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, like Vietnam, the report said.
Domestic rival HP has also started surveying the feasibility of its suppliers moving production and assembly away from China. It has asked suppliers of other components such as electronic modules and print circuit boards, and product assemblers to help prepare capacity in countries beyond China, like Vietnam, sources added.