As of: March 26, 2024, 3:14 p.m
By: Bleranda Shabani
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In a strategic shift, the Chinese government has reportedly started replacing processors from Intel and its rival AMD with domestic alternatives in its computers.
China has begun replacing government-used computers with processors from US companies AMD and Intel, according to a report.
China is relying on domestic hardware and software.
Pat Gelsinger, CEO of Intel, is likely to view this development with concern - it could have a significant impact on his company.
China bans chips from Intel and AMD
As the British newspaper
Financial Times
reported on Sunday, Chinese officials are now implementing a directive from December 2023.
This requires that criteria for “safe and reliable” processors and operating systems must be taken into account when purchasing computers.
The Microsoft Windows operating system and foreign-made database software on officials' computers are to be replaced with Chinese alternatives.
At the same time, the transition is also being pushed forward in state-owned companies.
Shares of AMD and Intel posted slight losses on Monday morning.
Pat Gelsinger is the CEO of Intel Corporation.
© Markus Schreiber/AP/dpa
Tensions between China and the USA
The rules, introduced in December, mark a crucial step by China toward developing domestic alternatives to foreign technology, mirroring similar moves in the United States as tensions rise between the two nations.
The US is using restrictive measures to prevent China's access to advanced chips for military purposes.
Due to security concerns, Washington has imposed sanctions on a growing number of Chinese companies, passed laws to encourage domestic technology production and blocked the export of advanced chips and related equipment to China.
China is striving for independence from key foreign technology
The
Financial Times,
citing two insider sources, reports that Chinese government agencies and state-owned companies currently enjoy some flexibility in purchasing computers with foreign processors.
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China has a clear goal: independence from key foreign technology.
For some time now, the country has been actively working to reduce its dependence on imported chips.
There is evidence that government officials have even been ordered to avoid using iPhones while on duty.