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China has introduced guidelines prohibiting the use of American processors from AMD and Intel in government computers and servers. financial time has reported. The new rules also block Microsoft Windows and foreign database products in favor of domestic solutions, marking the latest step in a long-running technology trade war between the two countries.
Government agencies must now use “safe and reliable” domestic replacements for AMD and Intel chips. The list includes 18 approved processors, including chips from Huawei and state-owned company Phytium, both of which are banned in the United States.
The new rules, introduced in December and quietly implemented recently, could have a significant impact on Intel and AMD. China accounted for 27 percent of Intel’s $54 billion in sales last year and 15 percent of AMD’s $23 billion in revenue, according to the FOOT. However, it is unclear how many chips are used in the government versus the private sector.
The measures are China’s most aggressive yet to restrict the use of American-built technology. Last year, Beijing banned domestic companies from using Micron chips in critical infrastructure. Meanwhile, the United States has banned a wide range of Chinese companies, from chip makers to aerospace companies. The Biden administration has also blocked US companies like NVIDIA from selling AI and other chips to China.
The United States, Japan and the Netherlands have dominated manufacturing of next-generation processors, and those nations recently agreed to tighten export controls on lithography machines from ASL, Nikon and Tokyo Electron. However, Chinese companies including Baidu, Huawei, Xiaomi and Oppo have already started. designing their own semiconductors to prepare for a future in which they could no longer import chips from the US and other countries.
