Dell founder says customers want it to move away from relying on China

Date:
Tue, 18 Apr 2023 14:02:25 +0000

Description:
Michael Dell wants his company to reduce its reliance on China.

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Dells customers are urging the company to diversify its component sourcing amid growing global tension, its founder has revealed.

Michael Dell told the Financial Times that the company has become intently focused on sourcing components from countries other than China over concerns about disruptions to the supply chain.

The news comes at a time when China is under continued scrutiny from numerous Western companies and bodies both for supply and security purposes, though Dell did not allude to security concerns. Dell to reduce reliance on China

Earlier this year, we reported that Dell planned to cut made in China chips from its devices by 2024 amid security and reliability concerns, but the CEO declined to comment on those plans.

Currently, many of the components that make up Dell machines are being manufactured in China, along with a significant proportion of assembly. Read more

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In reality, the company is one of many seeking to reduce its reliance on China, though its unclear which countries are on the companys shortlist.

The companys end-of-year figures recently indicated a challenging year ahead during which PC sales are expected to drop. Migrating production during a period of low demand could prove successful for Dell ahead of a hoped return of demand as economic pressures ease.

The company currently has manufacturing operations in Malaysia, India, and Brazil, as well as Poland, Ireland, and the US. Chip production investments
in Europe and the US mean that a move to countries not typically used to
house manufacturing plants could be in order.

Finally, offering an insight into the rapid developments in AI that have caused global concern, Dell explained that he remains optimist[ic] that
humans will correct the course of potential hazards before they wreak all sorts of havoc. Check out the best business laptops , or for something a bit more powerful, the best mobile workstations



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Link to news story: https://www.techradar.com/news/dell-founder-says-customers-are-demanding-less- reliance-on-china


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