US tech giant Dell is to phase out its use of all Chinese microchips by next year, according to a report by Japan’s Nikkei on Thursday
The computer-maker has also reportedly told suppliers to cut down the use of other parts that have been ‘made-in-China’.
And producers of printed circuit boards and other components have been told to prepare new capacity in Vietnam and other locations.
It comes after the US added Chinese chipmaker YMTC to its trade blacklist, when 21 other Chinese firms working on artificial intelligence chips were also added.
Back in October, the Biden administration published a set of export controls, including a measure to cut China off from supplies of certain chips made with US tools anywhere in the world.
The Nikkei report also claimed Dell rival HP has begun talking to suppliers about moving production away from China.
- Reuters with additional editing by Sean O’Meara