Dell Eyes Reducing Dependence On China - India, Latin America Likely To Be Beneficiaries, Analysts Say - Dell Technologies (NYSE:DELL)

Dell Technologies Inc DELL told suppliers to significantly reduce the amount of other "made in China" components in its products to diversify its supply chain amid concerns over U.S.-China tensions.
Dell's goal is to have all chips used in its products produced in plants located outside China by 2024, Nikkei Asia reports.
In 2022, Dell was the third-largest computer maker by shipment volume. It told suppliers its plans to "meaningfully lower" the amount of China-made chips it uses, including those produced at facilities owned by non-Chinese chipmakers.
Dell also asked suppliers of other components like electronic modules, print circuit boards, and product assemblers to help prepare capacity in countries beyond China, like Vietnam.
Dell and HP, which together shipped more than 133 million notebook and desktop computers in 2021, as per Canalys, have most of their assembly in the Chinese cities of Kunshan, Jiangsu province, and Chongqing, Sichuan province.
"The rising geopolitical tensions between the U.S. and China is one of the top reasons that electronics builders are now more serious about executing the plans to build a meaningful alternative production base besides China. That is true for Apple as well as other American electronics makers and brands," Eddie Han, an analyst with Isaiah Research, told Nikkei Asia.
Ivan Lam, a tech analyst with Counterpoint, told Nikkei Asia that more manufacturing bases for electronics would start to emerge over the next five to 10 years.
"The regional production hubs will be emerging in India, in Southeast Asia, and also in Latin America, and the shift will be starting from only product assembly to involve more components," Lam said.
Price Action: DELL shares are trading lower by 0.10% at $40.90 premarket on the last check Thursday.

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Dell Eyes Reducing Dependence On China - India, Latin America Likely To Be Beneficiaries, Analysts Say

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