China Allegedly Orders Telecom Companies to Phase Out Foreign Chips, Impacting Intel and AMD
Amid escalating tensions in the US-China tech war, rumors cited in reports from The Wall Street Journal and CNBC suggest that China has instructed major local telecom companies to gradually replace foreign chips by 2027, with Intel and AMD as the primary targets.
Sources cited in the same reports reveal that China’s Ministry of Industry and Information Technology (MIIT) has instructed several major local telecom operators to phase out foreign chips used in core telecommunications infrastructure by 2027. This move is expected to impact both Intel and AMD. Regarding this matter, CNBC reports that Intel declined to comment on the report, AMD didn’t respond to a request for comment, either.
It has been reported that Chinese authorities have ordered state-owned telecom operators to inspect their networks for extensive use of non-Chinese manufactured chips and to replace them before the deadline.
In the past, China has attempted to reduce its reliance on foreign chips but has faced obstacles due to a lack of high-quality locally produced chips. However, telecom operators now have more local alternatives for procurement, suggesting that the quality of Chinese-made chips may have become more stable and reliable.
Sources cited in the same reports indicate that this move will have the most significant impact on Intel and AMD, as most of the core processors used in Chinese and global networking equipment come from these two tech giants. However, the exact extent of the impact is still unknown.
On the other hand, a previous report from the Financial Times also indicated that, to refrain from using PCs and servers equipped with microprocessors from Intel and AMD, China implemented new regulations in December of last year requiring government agencies at the county level and above.
