Dell to Spend More Than $100 Billion on China Operations

Dell (DELL) will spend more than $100 billion over a 10-year period to expand operations and sales in China. The company will open a new operations center in Chengdu next year, boosting production, sales and support in southwest China, Bloomberg News reported. Dell will also add an office and as many as 500 workers to its existing facility in Xiamen.

Computer makers are rushing to the Chinese market in the hopes of tapping into rising incomes and demand. Microsoft (MSFT) CEO Steve Ballmer has said China may be the world's largest PC market in 2011.

A Dell spokesperson told Bloomberg that the $100 billion projection is a conservative estimate and includes spending on components and products procured in China.

"It makes perfect sense to set up a regional center in the hinterland city of Chengdu," Steven Zhang, an analyst at DBS Vickers (Hong Kong) Ltd told Bloomberg. "All other major PC brands, such as HP, Acer and Lenovo, are also pushing for rural market expansion in China over the past couple of years."

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frank1946

What a great announcement, I think this is good news for China and now that Intel is building it's next $ 3 Billion Fab in Viet Nam I am impressed that such great economic news can persist in the Orient and Pacific Rim...........so what happened to the Americans ? Seems like American Governments, like Russia, cast a negative spell on growth and investment ?

September 18 2010 at 1:22 PM Report abuse rate up rate down Reply
aim2havefun

I am never buying another Dell Computer until they start putting some money back into the community that made them rich in the first place. More and more middle class Americans are falling into poverty. No need to show any deference to Dell now that they've decided to put all their money for the next 10 years in China.

September 17 2010 at 2:07 PM Report abuse rate up rate down Reply
jkirgolf

No more dell computers for me and my company..............

September 17 2010 at 10:52 AM Report abuse +1 rate up rate down Reply
shm3418

That's 100,000,000,000.00 That should be here with the finished product sent over there! If they can't make it here, then kick there corp. heads out! No more!

September 17 2010 at 8:03 AM Report abuse +2 rate up rate down Reply
1 reply to shm3418's comment
themanindbox

Would be great to be able to force companies who do not have a 90% workforce in the US to no longer be called a US based company. Would be better to be able to educate people on "if it is not 100% made here, built, assembled, and all parts included are from here, including the raw materials milled in this country" it should not be allowed to put the "made in america" label on it.

September 17 2010 at 1:27 PM Report abuse rate up rate down Reply