Dell aims to eliminate its dependence on Chinese manufacturing by 2027, at least for products sold in the United States.According to information from Taiwan commercial timesDell’s actions are part of a step-by-step plan inspired by geopolitical implications.
Sources claim the above news came from an internal Dell document. Geopolitics seem to have sparked the creation of these plans, which we believe must indicate rising tensions in technology trade between the United States and China. China also threatens an armed invasion of Taiwan, an important center for semiconductor technology, components, and computers. Early signs of Dell’s plans to pull out of business deals with the Chinese company were seen in January when he was seen by three insiders. told Nikkei Asia Dell wanted to stop using Chinese chips by 2024.
Dell’s plans appear to follow the following timeline:
- 2025: Dell begins implementing plans to reduce reliance on Chinese components across desktops, laptops and peripherals
- 2026: All chips used in Dell products should be manufactured outside of China by non-Chinese companies. It is also said that by this point, he has a goal of making 60% of the devices Dell sells in the US outside of China.
- 2027: By this time Dell hopes to complete the transition 100% and no products sold in the US will be shipped from factories in China.
Although it’s not entirely clear from the translation of the text and diagrams, it seems that Dell is aiming to eliminate Chinese chips in preference. The next component on the hit list is ICs manufactured in China by foreign companies, followed by a wave of cutting other Chinese components and replacing Chinese manufacturing of devices.
It should also be remembered that the timeline primarily concerns Dell’s US (home) market laptop and desktop PCs, according to a Commercial Times report. By 2027 and beyond, more than half of Dell products sold worldwide will still be manufactured, at least partially, in China, according to the report. Dell ships about 50 million PCs a year, so changing production locations isn’t easy. But with these plans, Dell is going at its own pace rather than being forced by unfortunate events.
The geopolitically-influenced strategy outlined could find some support among hawks in the US, especially China, but Dell came out and Nikkei and Commercial Times sources did. I can understand not describing things in a way.Dell still sells millions of his PCs to Chinese consumers (opens in new tab)recently reported to migrate 1.5 million Dell and Alienware branded PCs in Q3 2022, 1.1 million in Q4 2022Dell’s domestic market remains the largest, with US customers buying 4.7 million Dell PCs in Q3 2022as a recent example.
