💰 PC giant Dell will reportedly stop using Chinese chips as soon as next year, and it shows how Washington-Beijing tensions are forcing companies to diversify their supply chains

TL;DR

The move underscores a shifting of supply chains out of China as companies seek to end their reliance on the manufacturing giant as geopolitical relations between Washington and Beijing sour, and as factory operations in China continue to be hit by the country's COVID-19 policies.Dell — the world's third-largest computer maker after Lenovo and HP — has also told suppliers that it plans to cut its use of made-in-China chips that are produced by non-Chinese firms, according to Nikkei."We continuously explore supply chain diversification across the globe that makes sense for our customers and our business," Dell told Insider.However, in October the US imposed export controls on shipping equipment to Chinese-owned factories making advanced logic chips.And then, Beijing abruptly rolled back its zero-COVID policy, in turn triggering a wave of infections that is wrecking havoc on economic activities in China right now."

Like summarized versions? Support us on Patreon!