- China has enacted new rules mandating the removal of U.S. processors from its government computers and servers, effectively banning Intel and AMD chips.
- Amidst ongoing technological tensions with the U.S., China is bolstering its semiconductor industry to lessen its dependence on foreign tech.
- U.S. sanctions and export controls have not only targeted Chinese firms like Huawei and SMIC, preventing them from accessing vital semiconductor manufacturing equipment, but have also affected U.S. companies.
China has introduced new regulations requiring the removal of U.S. processors from government-operated computers and servers, thereby excluding chips manufactured by Intel and AMD, according to a report by the Financial Times.
These purchasing standards, which were disclosed on December 26, are currently in effect and extend their influence to Microsoft’s Windows operating system and database software from international sources, with a preference for Chinese-made alternatives, as indicated in the report. Authorities above the township level are mandated to acquire processors and operating systems deemed “safe and reliable” as per the Financial Times.
Which chips China will use
AMD and Intel have not yet publicly commented on this significant development. This occurs while China is enhancing its own semiconductor production, aiming to diminish its dependence on overseas technology.
In December, the China Information Technology Security Evaluation Center unveiled its premier compilation of endorsed processors and operating systems, categorizing them as secure. This selection exclusively comprised entities from China, including 18 processors among which Huawei and the government-endorsed entity Phytium were highlighted.
These firms find themselves on the export restriction list maintained by Washington. The architecture of the chips produced by these Chinese entities incorporates Intel’s x86, Arm, and locally developed technologies. Meanwhile, the basis for their operating systems is rooted in the open-source framework of Linux software.
Semiconductors, essential parts in various gadgets from mobile phones to healthcare devices, are pivotal in the tech conflict between the U.S. and China. The U.S. has enforced export controls to limit Beijing’s access to crucial semiconductor machinery and technology. In October 2022, Washington enacted regulations designed to limit China’s capacity to acquire or produce sophisticated semiconductor chips, due to worries over their potential military application by China.
In October 2023, the U.S. introduced further regulations to stop the American chip design company Nvidia from exporting high-end AI chips to China. Beginning in 2019, Chinese technology firms, including Huawei and SMIC, China’s leading semiconductor manufacturer, have faced U.S. sanctions.
In September 2022, NVIDIA encountered a comparable challenge when the U.S. tightened controls on AI chip exports to China. U.S. authorities instructed NVIDIA to cease exports of its two leading AI chips, used for tasks including image recognition, to China. This directive threatened to severely impact the capabilities of Chinese companies to conduct advanced AI operations and could also detrimentally affect NVIDIA’s operations within the nation.
These sanctions are designed to limit their access to cutting-edge technology. Specifically, SMIC has been barred from acquiring extreme ultraviolet lithography machines, which are essential for producing sophisticated chips, from ASML. The technological sanctions led by the U.S. have inadvertently increased sales for China’s local semiconductor equipment producers.
Image credits: Kerem Gülen/Midjourney
