China has issued guidelines prohibiting the use of US-made processors from companies like AMD and Intel in government computers and servers, The Financial Times reported.
Additionally, the guidelines restrict the use of Microsoft Windows and foreign database products in favor of domestic alternatives, signaling the latest development in the ongoing tech trade tensions between the two countries.
Under the new regulations, government agencies are mandated to utilize “safe and reliable” domestic replacements for AMD and Intel chips, with a list of 18 approved processors provided. Among the approved chips are those from Huawei and the state-supported company Phytium, both of which face bans in the US.
These new measures, introduced in December and recently put into effect, could have significant ramifications for Intel and AMD. China represented a notable portion of both companies’ revenues last year, with 27 percent of Intel’s $54 billion in sales and 15 percent of AMD’s $23 billion revenue coming from the country, as reported by the FT. However, the exact distribution of these chips between government and private sector usage remains unclear.
This represents China’s most aggressive move yet to limit the adoption of US-made technology. In the past year, Beijing has also barred domestic companies from utilizing Micron chips in critical infrastructure. Meanwhile, the US has imposed bans on various Chinese entities, spanning from chip manufacturers to aerospace firms. Additionally, the Biden administration has restricted US companies like NVIDIA from supplying AI and other chips to China.
While the manufacturing of advanced processors has been dominated by countries like the US, Japan, and the Netherlands, recent agreements between these nations have led to tightened export controls on lithography machines. In response, Chinese companies such as Baidu, Huawei, Xiaomi, and Oppo have begun developing their own semiconductor designs in anticipation of potential restrictions on chip imports from the US and other countries.
