Chinese authorities have asked telecom carriers to discontinue the use of foreign chips by 2027, according to a report. The development will directly impact Intel and Advanced Micro Devices , two key US chipmakers.
China’s Ministry of Industry and Information Technology ordered state-owned mobile operators to inspect their networks for non-Chinese semiconductors and map out timelines to replace them,was the largest market for US chip giant Intel in 2023. The company received over 27% of its total revenue from the Asian country.
In 2022, China’s state asset regulator also directed state-owned enterprises to replace office software systems with domestic products by 2027.It has asked South Korea to implement export controls on semiconductor tools. Notably, South Korea is China’s one of the key trading partners. US authorities are pushing Seoul to strictly restrict the export of equipment and technology needed to develop memory chips and advanced logic chips.
The US government also didn’t approve an AI chip AMD designed for China. The company will now have to apply for an export license.