China Bans Intel, AMD Chips, and Windows from Government Computers

China is aiming to replace foreign technology in its government computer systems, according to a report by The Financial Times. New guidelines prioritize domestically produced processors and operating systems over those from U.S. companies like Intel, AMD, and Microsoft.

Shifting Towards Domestic Tech:

The Chinese government is implementing new procurement rules that encourage the use of domestic central processing units (CPUs) and software in government computers and servers. These rules aim to promote "safe and reliable" hardware and software, with approved products including chips from Huawei and Phytium.

This move comes amidst rising tensions between China and the United States, particularly in the technology sector. The U.S. has imposed restrictions on Chinese companies like Huawei, limiting their ability to purchase certain American-made components.

Impact on Chipmakers:

The shift towards domestic tech could have a significant financial impact on major chipmakers like Intel and AMD. A substantial portion of their revenue comes from China, with China accounting for 27% of Intel's sales and 15% of AMD's sales. However, the exact impact on these companies will depend on the speed and scale of China's transition to domestic alternatives.

The Race for Technological Independence:

China's push for domestic tech is part of a broader effort to achieve technological independence. The U.S. currently dominates the chip design industry, along with Japan and the Netherlands. By developing its own domestic alternatives, China aims to reduce its reliance on foreign technology and potentially gain a competitive edge.

Uncertainties Remain:

While China is making strides in developing domestic tech solutions, it remains to be seen if these solutions can fully match the performance and capabilities of established foreign brands. The success of this initiative will depend on China's ability to continue technological advancements and create a robust domestic tech ecosystem.

(Source | Via)