Dell Inc to reduce dependence on Chinese chips amid China, US rivalry: Report
US computer maker Dell Inc. has decided to reduce its dependence on Chinese chips due to the increased rivalry between the two countries. This comes as a setback for China in the chip-technology sector, wrote Valerio Fabbri for Geopolitica.info.
Dell has announced that it seeks to reduce its reliance on chips made in China, including those made by foreign firms. The company said it will stop using Chinese-made chips by 2024.
The company has told suppliers to reduce the amount of other made-in-China components in its products amid concerns over US-China tensions.
According to Fabbri, the development comes as a setback for China when several cities are making attempts to promote the development of high-end and intelligent manufacturing.
It is also a signal of the growing rivalry between the US and China on semiconductors. The US sees China's use of technological know-how as a threat to its national security, wrote Fabbri for Geopolitica.info.
Dell in 2022 told suppliers that it aims to lower the amount of Chinese-made chips it uses including those produced at facilities owned by non-Chinese chipmakers.
The company 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, writes Fabbri for Geopolitica.info.
Indo-Pacific Centre for Strategic Communications (IPCSC) recently reported that China finds it difficult to acquire microchips amidst the US-imposed barriers.
The report also states that due to the restrictions, "China is finding it tough to train artificial intelligence systems and power advanced applications in the military and surveillance fields".
The US administration in
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