Big blow for Intel, AMD: China tells telecom firms to phase out foreign chips
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Chinese authorities have asked telecom carriers to discontinue the use of foreign chips by 2027, according to a report. The development will directly impact Intel and Advanced Micro Devices (AMD), two key US chipmakers.
The move appears to be part of China’s wide-scale efforts to decrease its dependence on Western-made technology. The Asian giant is switching to domestic alternatives amid ongoing Sino-US tensions. The development comes as the US tightens curbs on high-tech exports to its rival countries.
Featured Video RelatedChina’s Ministry of Industry and Information Technology ordered state-owned mobile operators to inspect their networks for non-Chinese semiconductors and map out timelines to replace them, the WSJ report said. Those companies included China Mobile and China Telecom.
In March, the Chinese government released guidelines to discontinue Intel and AMD from government personal computers and servers.
Intel’s largest market
China was the largest market for US chip giant Intel in 2023. The company received over 27% of its total revenue from the Asian country.
Last year, China and Hong Kong accounted for 15% of AMD’s sales. The chipmakers depend heavily on the world’s second-biggest economy for their sales.
Aggressive Procurements
WSJ has also found that the recent procurements by Chinese telecom carriers clearly indicate they are increasingly switching to domestic options. This has partly been made possible given the improved quality and stability of local chips.
In 2022, China’s state asset regulator also directed state-owned enterprises to replace office software systems with domestic products by 2027.
US to curb China’s chipmaking
According to Bloomberg, the US plans to curb China’s advanced chipmaking.
It has asked South Korea to implement export controls on semiconductor tools. Notably, South Korea is China’s one of the key trading partners. US authorities are pushing Seoul to strictly restrict the export of equipment and technology needed to develop memory chips and advanced logic chips.
Washington could soon reveal names of Chinese firms on its blacklist for receiving US-made chip-making equipment. American companies are restricted from sending equipment to Chinese semiconductor factories.
Access to advanced American chips
In October 2022, the US instituted rules to limit China’s access to advanced American chips, especially those critical to artificial intelligence technology. Late last year, the US announced new restrictions to prevent the sale of more AI chips to China, seeking to close perceived loopholes in the previous order, reported CNBC.
The US government also didn’t approve an AI chip AMD designed for China. The company will now have to apply for an export license.
However, the Trump administration had allowed Intel to ship central processors to Huawei, which was put on a trade restriction list in 2019 over sanctions violations related to Iran, for use in laptops since 2020.
Huawei recently unveiled its first AI-enabled laptop, the MateBook X Pro, powered by Intel’s new Core Ultra 9 processor.
Some US lawmakers had asked the Biden administration to revoke Intel’s special license. However, they mutually agreed to continue it as the license would expire later this year.
(责任编辑:行业动态)
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