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Dell may stop using chips made in China by 2024

Battle for key raw materials for tech items becomes bigger

In what could deal a big blow to China, US tech major Dell may put an end to using Chinese chips by 2024. According to Nikkei Asia, the tech giant has also told suppliers to significantly reduce the amount of other “made in China” components in its products as part of efforts to diversify its supply chain amid concerns over Washington-Beijing tensions.

Quoting unnamed sources, the news organisation said that the world’s third-largest computer maker by shipments has told suppliers that it would ‘meaningfully lower’ the amount of China-made chips it uses, including those produced at facilities owned by non-Chinese chipmakers.

“Dell’s goal is to have all chips used in its products produced in plants located outside China by 2024,” the report said.

Several countries including India, Japan and South Korea besides many in Europe are aggressively working on filling up the gap. Not just that. The US too is offering incentives to companies to start manufacturing in the country.

India has already given its nod for a Rs 76,000 crore Production-Linked Incentive (PLI) scheme aimed at developing the semiconductor and display manufacturing ecosystem.

Invest India, meanwhile, in its assessment said that India’s semiconductor demand at present, is valued around $ 24 billion but by 2025, the market is expected to touch $ 100 billion.

Demand for semi-conductor has increased significantly with the rise in usage of mobile phones and computers. The advent of 5G technology will push demand further.

Also read: PM hails Vedanta-Foxconn pact to set up Rs 1.54 lakh crore chip making plant in Gujarat