According to a Sunday, 24 March 2024 Financial Times report, China has initiated guidelines to stop using Intel Corporation (INTC) and Advanced Micro Devices, Inc. (AMD) microchips in government computerised equipment.
China to Stop Using Intel and AMD Chips in Government Devices
The country also wants to sidestep Windows, Microsoft Corporation’s (MSFT) widely used operating system, and other internationally produced database software.
The guidelines reportedly stipulated that all government bodies above the “township level” must adapt their procurement criteria to ensure that they acquire only “safe and reliable” microchips and software. In December 2023, China’s Ministry of Industry published three lists containing approved processors, operating systems and databases.
Based on South China Morning Post (SCMP) data, China imported 479.5 billion integrated circuit units in 2023. The value of these imports is approximately $349.4bn. The SCMP further indicated that these imports decreased in volume and value compared to 2022. Semiconductors, however, stayed at the top of the import priority list.
Don’t miss out the latest news, subscribe to LeapRate’s newsletter
In October 2023, CNBC ran a report detailing plans by the US Department of Commerce to curtail the export and sale of advanced artificial intelligence to China. This has restricted the export of Nvidia Corporation’s (NVDA) A800 and H800 microchips. China’s response is now affecting Intel and AMD.
The US CHIPS and Science Act aims to grow local semiconductor production and procurement to curb the dependency on Chinese and Taiwanese electronics. China is seemingly following suit with this new directive, as these guidelines are another step towards keeping production and economic support local.
