Dell’s customers are urging the company to diversify its component sourcing amid growing global tension, its founder has revealed.
Michael Dell told the Financial Times (opens in new tab) 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.
In reality, the company is one of many seeking to reduce its reliance on China, though it’s unclear which countries are on the company’s shortlist.
The company’s 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.”