China has recently issued orders for its major telecommunications operators to remove foreign chips from their networks by the year 2027. This directive is seen as a setback for leading US chip manufacturers such as Intel and AMD.
Reports from The Wall Street Journal reveal that Chinese officials instructed state-owned operators, including China Mobile, China Unicom, and China Telecom, to gradually phase out foreign processors from their infrastructure. This move is perceived to escalate tensions between China and the United States.
The Ministry of Industry and Information Technology in China mandated these operators to conduct assessments of their networks for any foreign semiconductors. Subsequently, they are required to develop timelines for replacing these chips with domestic alternatives.
In 2023, China was responsible for more than a quarter of Intel’s revenue and 15% of AMD’s earnings. This decision to eradicate foreign chips from the networks is a significant blow to both companies.
Furthermore, The Financial Times reported earlier this year that China aims to eliminate the use of Intel and AMD processors, along with Microsoft’s operating system, from government computers and servers. Instead, there is a strong push for utilizing local hardware and software solutions.
To add to the complexity of the situation, the US recently enforced stricter export restrictions on the sale of AI chips to China, targeting companies like Nvidia. These moves from both countries underscore the intensifying competition and technological rivalry in the semiconductor industry.
Frequently Asked Questions (FAQs) Related to the Above News
What did China recently order its major telecommunications operators to do by 2027?
China ordered its major telecommunications operators to remove foreign chips from their networks by 2027.
Which US chip manufacturers are likely to be affected by this directive?
Leading US chip manufacturers such as Intel and AMD are likely to be affected by this directive.
What steps are the Chinese telecommunications operators required to take?
The operators are required to conduct assessments of their networks for any foreign semiconductors and develop timelines for replacing them with domestic alternatives.
How much of Intel's revenue and AMD's earnings did China account for in 2023?
In 2023, China was responsible for more than a quarter of Intel's revenue and 15% of AMD's earnings.
What other technology restrictions has China imposed recently?
China also aims to eliminate the use of Intel and AMD processors, along with Microsoft's operating system, from government computers and servers, in favor of local hardware and software solutions.
What export restrictions has the US recently enforced targeting companies like Nvidia?
The US recently enforced stricter export restrictions on the sale of AI chips to China, targeting companies like Nvidia.
What does the competition and rivalry in the semiconductor industry between China and the US underscore?
The competition and rivalry in the semiconductor industry between China and the US underscore the intensifying technological tensions between the two countries.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
