The founder of Dell, Michael Dell, has recently revealed that customers are urging the company to diversify its component sourcing outside of China amidst the growing global tension. Dell himself has said that his company has become ‘intently focused’ in exploring different possibilities to obtain their components from other locations to avoid potential supply chain disruptions.
The increase in global scrutiny towards China has drawn Dell’s attention to move away from relying on Chinese components, though Michael Dell is yet to make any comment regarding issues related to security. Earlier this year Dell planned to eliminate the use of ‘made in China’ chips in its electronic products by 2024.
Dell’s current manufacturing operations are located in Malaysia, India, Brazil, Poland, Ireland, and the US. Although Dell may be looking to expand the list of sources away from the previously mentioned countries, investments in chip production in Europe and the US could be the best approach to maintain stability in prices and quality.
Dell’s recent end of year figures have indicated a tough year going forward with decreasing sales in PC. Due to economic pressure, migration of production during these tough times is foreseeable as a solution to increase sales before the return of demand.
At this moment Dell is not the only one looking to reduce its ties with China and away from the concerning implications that come with it. During the same announcement, Michael Dell expressed his optimism in humans correcting the course of potential hazards before they cause more havoc.
Michael Dell is the founder, chairman and chief executive officer of Dell Technologies, one of the world’s largest technology infrastructure companies based in Texas, United States. He founded the company in 1984 with a start-up investment of $1000. His leadership and actions have made the company a decades long success story with a current worth of over $91.5 billion.
Dell Technologies is an information technology company that designs, develops, and sells computers, servers, storage devices, IT management systems, and other technology related services and products. Under Dell’s leadership, the company has forged strategic alliances with leading global technology companies such as Intel, Microsoft, and Google, among others. Through these partnerships, Dell is able to provide the world with quality and innovative products and services.
