China has finally said aloud what was once only discussed behind closed doors: the country must rid itself of US chips. Four government-backed industry associations, representing the bulk of China’s semiconductor demand, issued co-ordinated statements this week urging member companies to rethink purchases of American silicon that three of them deemed as “no longer safe or reliable”.
” Analysts at Bernstein estimate Chinese groups have the power to influence sourcing decisions for the roughly 40 per cent of the global smartphone market they control and the 23 per cent of the computer market supplied by companies that include the world’s largest PC maker Lenovo. Customers in China, for example, contributed 27 per cent of sales last year for Intel, America’s stumbling traditional chip champion.
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