China has imposed strict guidelines prohibiting the use of US processors from AMD and Intel, along with Microsoft Windows and foreign database products, in government computers and servers. This marks a significant escalation in the ongoing tech trade war between China and the US. The new rules mandate the use of “safe and reliable” domestic alternatives, with 18 approved processors listed, including those from Huawei and Phytium, both banned in the US.
The impact of these regulations could be substantial for Intel and AMD, as China represented a significant portion of their sales last year. While the exact distribution of chips between government and private sectors remains unclear, the move signifies China’s most aggressive attempt yet to curb reliance on US-built technology. Additionally, it follows previous restrictions such as prohibiting the use of Micron chips in critical infrastructure.
China’s actions mirror the US’s efforts to limit Chinese companies’ access to American technology. The Biden administration has implemented bans on various Chinese firms, including semiconductor manufacturers and aerospace companies. Meanwhile, global players like the US, Japan, and the Netherlands have tightened export controls on advanced technology, signaling an increasingly fractured landscape in the semiconductor industry.
In response to these restrictions, Chinese companies have begun developing their own semiconductor technologies. Entities like Baidu, Huawei, Xiaomi, and Oppo are investing in chip design to reduce reliance on imported components. This trend underscores the growing importance of self-sufficiency in the semiconductor sector amidst escalating geopolitical tensions and trade disputes.
