Dell Technologies Inc plans to stop using China-made chips by 2024 and has told suppliers to reduce the amount of other made-in-China components in its products amid concerns over U.S.-Beijing tensions, Nikkei reported on Thursday.
The computer maker told suppliers late last year that it aims to meaningfully lower the amount of China-made chips it uses, including those produced at facilities owned by non-Chinese chipmakers, the report added, citing three people with direct knowledge of the matter.
The US is rapidly ramping up efforts to try to hobble China’s progress in the semiconductor industry – vital for everything from smartphones to weapons of war.
In October, 2022, Washington announced some of the broadest export controls yet – requiring licences for companies exporting chips to China using US tools or software, no matter where they’re made in the world.
Washington’s measures also prevent US citizens and green card holders from working for certain Chinese chip companies. Green card holders are US permanent residents who have the right to work in the country.
It is cutting off a key pipeline of American talent to China which will affect the development of high-end semiconductors.
Advanced chips are used to power supercomputers, artificial intelligence and military hardware.
The US says China’s use of the technology poses a threat to its own national security.
Undersecretary at the US Commerce Department, Alan Estevez, who announced the rules, said his intention was to ensure the US was doing everything it could to prevent “sensitive technologies with military applications” from being acquired by China.
“The threat environment is always changing and we are updating our policies today to make sure we’re addressing the challenges,” he said.
Meanwhile, China has called the controls “technology terrorism”.
Countries in Asia that produce chips – such as Taiwan, Singapore and South Korea – have raised concerns about how this bitter battle is affecting the global supply chain.