American Technology Giants Intel and AMD Stocks Fall Following China’s Order to Replace Foreign Chips
On Friday, American technology companies Intel and AMD saw a significant drop in their stock prices after reports surfaced that China has ordered its telecommunications companies to replace foreign chips in their systems by 2027. According to The Wall Street Journal, this move by Beijing has caused Intel’s shares to fall by 5 percent and AMD’s by 4 percent on Wall Street.
The Wall Street Journal, citing unidentified sources familiar with the matter, highlighted Intel and AMD as the American technology companies that will bear the brunt of this decision by the Chinese government. The recent development of high-quality Chinese alternatives to foreign semiconductors has made it possible for China to implement this measure.
The Financial Times had previously reported that Beijing intends to replace American chips from Intel and AMD in government-used computers and servers. This decision comes in the wake of US lawmakers passing legislation banning Chinese telecommunications equipment in the country over national security concerns and restricting the sale of artificial intelligence-capable chips to China.
The impact of China’s directive on Intel and AMD’s business operations and market share remains to be seen as they navigate through this challenging situation.
Source: EFE