In response to geopolitical uncertainty, the “de- sinicization” process of the supply chains of some of the top international consumer electronics makers is in full swing.
In January, news broke that U.S. computer maker Dell aims to stop using Chinese-made chips by 2024 and has told suppliers to significantly reduce the number of other “Made in China” components in its products.
According to the latest report by Taiwan’s Business Times, Dell expects to start “de-sinicization” its desktop computers, laptops and peripheral assembly from 2025. It is understood that Dell has recently met intensively with the middle and downstream supply chain, to notebooks, for example, Dell requires that starting in 2025, 60% of the products supplied by Dell for the U.S. market must be produced in plants outside mainland China, and in 2027 the proportion of U.S. market products assembled in locations outside mainland China will reach 100%, and the company has similar requirements for desktop computers.
Industry analysis, the U.S. market contributes more than 40% of Dell’s notebook shipments, as a projection, notebook computers in 2025 in plants outside mainland China assembly volume of 18 million -19.2 million units, 100% in 2027 when assembled outside mainland China, assembly volume of 30 million -32 million units, the supply chain outside mainland China to set up a stronghold to accelerate efforts Not to be underestimated.
In terms of chip procurement, the report points out that Dell will be carried out in two phases, the first phase from 2026 at the earliest to exclude mainland China IC manufacturers in mainland China fab casting products. The second phase is to exclude mainland China IC manufacturers in overseas fabs to cast production products, as for Europe, the United States, Japan, South Korea and Taiwan, IC manufacturers in mainland China fabs to cast production products, sooner or later will be “moral persuasion” to change the location of the casting.
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