Beijing, China – In a recent move, the Chinese government has unveiled guidelines that prohibit the use of US processors from leading companies such as AMD and Intel in government computers and servers. Alongside this restriction, Microsoft Windows and foreign database products have also been barred in favor of domestic solutions. This decision marks the latest development in a long-standing tech trade war between China and the United States.
Under the new guidelines, government agencies are mandated to utilize “safe and reliable” domestic alternatives to AMD and Intel chips. The approved list includes 18 processors, with options from Huawei and the state-backed company Phytium, both of which have faced bans in the US. The implementation of these rules, introduced in December and recently enforced, is expected to have a significant impact on the revenues of Intel and AMD.
China’s actions to limit the use of US-built technology represent its most aggressive stance to date. Last year, Beijing prohibited Chinese firms from using Micron chips in critical infrastructure, as part of an ongoing push towards technological self-sufficiency. Concurrently, the US has restricted various Chinese companies, from semiconductor manufacturers to aerospace entities, from conducting business in American markets. Additionally, the Biden administration has taken steps to prevent US companies like NVIDIA from exporting certain chips to China.
Traditionally, the production of cutting-edge processors has been dominated by countries like the US, Japan, and the Netherlands. Recently, these nations have collaborated to tighten export controls on essential semiconductor manufacturing equipment. In response to these restrictions, Chinese companies like Baidu, Huawei, Xiaomi, and Oppo are proactively developing their semiconductors to mitigate potential disruptions in the supply chain. This strategic move underscores China’s aim to reduce dependence on foreign technologies and establish its foothold in the semiconductor industry.