According to a report by the Financial Times, China has initiated stringent guidelines aimed at phasing out U.S.-manufactured processors from government computers and servers. This move effectively sidelines chips produced by industry giants Intel and AMD.
Unveiled on December 26, the procurement directives are now being enforced, signaling a significant shift in preference towards Chinese alternatives, impacting not only processor choices but also Microsoft’s Windows operating system and foreign-made database software.
Government entities above the township level are mandated to procure processors and operating systems deemed “safe and reliable,” as per the FT report.
While both AMD and Intel declined to comment on the matter, this development underscores China’s ongoing efforts to bolster its domestic semiconductor industry and reduce dependency on foreign technology.
Semiconductors, crucial components across various devices, have become a focal point in the technology rivalry between the U.S. and China. The U.S. has imposed export restrictions to curb Beijing’s access to key semiconductor equipment and technologies.
In response, Washington introduced regulations in October 2022 to restrict China’s access to advanced semiconductor chips amid concerns over potential military applications. Subsequently, new measures were rolled out in October 2023, targeting U.S. chip design firm Nvidia’s ability to sell advanced AI chips to China.
Since 2019, Chinese tech giants like Huawei and semiconductor manufacturer SMIC have faced U.S. sanctions aimed at limiting their access to advanced technology. SMIC’s efforts to acquire critical extreme ultraviolet lithography machines from ASML, essential for advanced chip production, have been hindered by these restrictions.
The tech embargo led by the U.S. has inadvertently spurred growth in China’s domestic chip equipment manufacturing sector. Data from Shanghai-based CINNO Research indicates that China’s top 10 equipment makers experienced a 39% revenue increase in the first half of 2023 compared to the previous year.
