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.

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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."