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Dell orders suppliers to diversify their fabrication and backends

by on15 February 2023

Wants stronger supply chain

Grey box shifter Dell has told its semiconductor suppliers to diversify their fabrication and backend facilities by the end of 2024.

Dell wrote to suppliers saying the requirement comes after a review of its integrated circuit sourcing strategy after the embarrassing global supply chain shortages last year,

Dell had been affected by labour shortages amid the pandemic, reduced logistics capacity, natural disasters that disrupted fulfilment facilities and unprecedented IT demand, among other challenges, it said more resilience was needed in its supply chain.

“Resilience through improved diversification and continuity of supply will help Dell to mitigate future disruptions and continue supporting its global business,” the letter said.

Some of it was to free Dell from its dependence on China and it wanted to make sure that its suppliers followed.

Earlier this year, news agency Nikkei Asia reported that Dell plans to have all chips used in its products produced in plants located outside China by 2024, citing sources with knowledge of the matter.


Last modified on 15 February 2023
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