Dell to follow Google out of China?

Rumours are circulating that Dell could be the next big name out of China

Hani Megerisi
24 Mar 2010

Dell is reportedly planning to pull its manufacturing plants from China.

The Indian Prime Minister told his country's planning commission that Dell was looking to leave China, according to a report in India’s Financial Chronicle.

“This morning I met the chairman of Dell Corporation,” PM Manmohan Singh reportedly told the commission. “He informed me that it is buying equipment and parts worth $25 billion from China. It would like to shift to [a] safer environment with [a] climate conducive to enterprise, with [the] security of [a] legal system.”

Dell has manufacturing plants in the Chennai region of India and the Penang region of Malaysia, both of which could be possible alternatives if Dell decides to exit China.

The announcement comes in the same week as Google decided to pull the plug on its Chinese search engine, after a long-running row over internet censorship.

A spokesperson for Dell said while "India also has an opportunity of becoming a hardware manufacturing hub... Dell has not made any plans to shift its component spend at this time".

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