The Chinese government has recently issued new guidelines banning the use of Intel and AMD microprocessors in state-owned personal computers and servers, as reported by the Financial Times. This move is part of an effort to phase out foreign-made technologies, including Microsoft’s Windows operating system, in favor of domestic alternatives.
The procurement guidance, announced last December, mandates that all government agencies above the township level must use processors and operating systems deemed “safe and reliable” by the Chinese government. The list of approved processors consists of 18 Chinese-made options, including those from Huawei and state-owned Phytium, both of which are on the U.S. government’s export blacklist.
In addition to the ban on Intel and AMD chips, the government is also pushing for the adoption of alternative operating systems based on open source Linux software. These measures reflect China’s ongoing efforts to reduce its reliance on American technology and promote domestic innovation.
The impact of these restrictions is not limited to Chinese companies. According to FactSet data, China accounts for a significant portion of revenue for Intel, AMD, and Microsoft. Consequently, stock prices for these tech giants experienced declines following the news.
Intel saw a 2% drop in premarket trading, bringing its year-to-date losses to 15%. AMD also experienced a 2% decline before the market opened, despite a 22% increase in its stock price since the beginning of the year. Microsoft’s shares fell 1% premarket as well.
The Chinese government’s actions mirror the U.S. government’s efforts to restrict Chinese-made technology within the United States, including sanctions on Chinese companies and limitations on chip-making technology exports. MarketWatch has reached out to Intel, AMD, and Microsoft for comment on the situation.