China prepares to ban AMD and Intel chips from goverment computers

China bans AMD and NVIDIA
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In a recent geopolitical change, China is on a move to ban the chipset from US companies like AMD and Intel. And following the news, stocks of chipmaking giants Intel and Advanced Micro Devices (AMD) took a hit on Monday morning. In this article, let’s dive into discussing the  latest Chinese regulations imposed on US chip manufacturing giants

China Bans AMD and Intel Overview

Chinese Government’s Technology Restrictions

The move comes from the Chinese government’s efforts to restrict foreign technology from its federal computers. This includes operating systems like Microsoft’s Windows and other database software produced overseas. Moreover, Beijing’s push for technological independence, termed xinchuang or “IT application innovation,” is a key component of China’s strategy across military, governmental, and state sectors. State-owned enterprises are mandated to transition to domestic technology providers by 2027, as directed by the State-owned Assets Supervision and Administration Commission. Quarterly progress reports on IT system revamps have been initiated, although certain foreign technologies may still be permitted for use.

China brings news regulations

Currently, China has approved eighteen chips for use, all of which are from domestic companies. Among these approved entities are Huawei and state-backed Phytium, both of which are listed on the U.S. trade embargo.

Impact on U.S. Semiconductor Industry

Amidst the ongoing competition with China, the United States government is advancing its investments in chipmaking, with American semiconductor firms reaping the benefits. In parallel, Intel is among the recipients of funds from the CHIPS and Science Act, a $52.7 billion initiative aimed at bolstering domestic chip production. 

Intel cpu

Domestic Alternatives

The Chinese industry ministry, in late December, released a statement outlining three separate lists of CPUs, operating systems, and centralized databases deemed “safe and reliable” for a three-year period, all sourced from Chinese companies.

Market Response in the US

Initially, Intel’s stock dropped by about 3% when markets opened on Monday, with AMD also experiencing a 1% decline. However, by mid-morning, Intel managed to recover slightly, trading down only 2%, while AMD remained unchanged.

China bans AMD and Intel Conclusion

Although this move as understood only applies to government-related computers, this regulation could play an intensifying role in the China-US geopolitical landscape.

  • Meanwhile, watch our review of Samsung Galaxy S24 Ultra