China has brought in guidelines banning the use of US processors from Intel and AMD in government computers and servers.
The new rules also ban Microsoft Windows and other foreign databases, in favour of more domestic solutions.
Government agencies are now required to use “safe and reliable” domestic replacements. A list was released indicating 18 approved processors, which includes chips from Huawei and Phytium. Both of these companies are banned in the US.
The guidelines were introduced in December, and have been quietly implemented recently. They could have a major impact on Intel and AMD as well.
China accounted for 27% of Intel’s sales last year, and 15% of AMD’s revenue. It’s unclear how many chips are being used inside the government versus private sector.
This move is one of China’s most aggressive when it comes to restricting the use of US technology. Last year, Beijing prohibited domestic companies using Micron chips.
The US has also banned a wide variety of Chinese companies, from chip manufacturers to aerospace firms.
The Biden Administration also banned US companies such as NVIDIA from selling AI and chips to China.
The US, Japan and the Netherlands lead when it comes to manufacturing processors, and they have recently agreed to tighten export controls on lithography machines from ASL, Nikon and Tokyo Electron.
Chinese companies including Baidu, Huawei, Xiaomi, and Oppo have already begun designing semiconductors, preparing for a future where they can’t import from other countries.
Intel and AMD shares recently fell following the news of these new guidelines. Intel was down 2.9% and AMD fell less than 1%.
For now, there is still some flexibility for government agencies to buy computers that are powered by foreign processors.
