Dell Won’t Drop China Factories, SVP Wu Says
Zhang Yushuo | Fan Xuehan
DATE:  Nov 28 2023
/ SOURCE:  Yicai
Dell Won’t Drop China Factories, SVP Wu Says Dell Won’t Drop China Factories, SVP Wu Says

(Yicai) Nov. 28 -- Dell has never said the US personal computer maker will move its supply chain out of China, said Wu Dongmei, senior global vice president at Dell Technology Group, dismissing a rumor to the contrary.

“China is always an important market for Dell,” Wu noted at a public event yesterday.

Nikkei Asia and Commercial Times reported earlier this year that the Texas-based company plans to start gradually excluding integrated circuits made by manufacturers in the Chinese mainland from 2026.

The reports said Dell aims to cut its dependence on China-made parts for desktop computers, laptops, keyboards, and other devices from 2025 and will make sure that no Dell products use chips made in the mainland by 2027 while moving half of its computer assembly capacity elsewhere. Rumors of a complete supply chain shift away from the mainland ensued. 

Dell entered China in 1998. The company has more than 10,000 employees and a complete system of procurement, manufacturing, sales, and services in the country. Its three China plants are located in Xiamen, Chengdu, and Kunshan.

In the third quarter, Dell was the world's third-biggest PC seller with a market share of 15.6 percent, even though its sales to dealers fell 14 percent from a year ago, according to data provider Canalys. Dell had 8 percent of the China market in the second quarter, ranking fourth, down from 14 percent a year ago. From April to June, sales to dealers plummeted 52 percent.

Editor: Emmi Laine

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Keywords:   Dell,supply chain,China,exit,PC,computer,production,chips