China orders stripping of US chipsets from networks

China orders stripping of US chipsets from networks

Chinese operators were reportedly ordered by officials to phase out use of foreign chipsets by 2027, a move that would hit US chip giants Intel and Advanced Micro Devices (AMD).

The Wall Street Journal (WSJ) reported, officials ordered China’s largest operators China Mobile, China Unicom and China Telecom to phase out use of foreign chips earlier this year. Operators have to examine their networks for such technologies and provide timelines to replace for Chinese made alternatives, with the deadline in mind. 

According to the WSJ, Chinese companies accounts for over 27% of Intel’s total income in 2023, and 15% of AMD’s. 

The move comes as tensions between the US and China continue to rise. The US introduced more stringent export restrictions last year on sales of AI chips to China from firms such as Nvidia. 

The Financial Times reported in March, the Chinese government had introduced guidelines to phase out US chips from Intel and AMD from government personal computers and servers. 

State-owned Chinese companies were also told in 2022 to replace office software with domestic alternatives by 2027, marking the first time a deadline was imposed. 

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