China Plans to Replace AMD and Intel In Telecom

China is ramping up its efforts to end its reliance on American tech firms, telling telecom operators to replace chips made by AMD and Intel....
China Plans to Replace AMD and Intel In Telecom
Written by Matt Milano
  • China is ramping up its efforts to end its reliance on American tech firms, telling telecom operators to replace chips made by AMD and Intel.

    The US has been working to restrict tech—especially networking tech—from Chinese firms over concerns about national security. Those efforts have seen the likes of Huawei, ZTE, and others banned from US networks. According to The Wall Street Journal, China is retaliating by giving its own telecom companies a 2027 deadline to phase out and remove chips from AMD and Intel.

    China has been pouring billions into its semiconductor industry in an effort to make it competitive with US companies, as well as Taiwan and South Korea. Beijing’s efforts have been hampered by other countries joining the US in restricting its access to advanced chip tech. China has pushed back, trying to pressure the Netherlands to grant it access to ASML’s extreme ultraviolet lithography (EUV) machines.

    So far, China’s efforts appear to be having mixed results. Early reports indicated the country’s semiconductor industry was on the verge of collapse as a result of the sanctions. Despite the setbacks, Huawei surprised the industry and US officials when it released the Mate 60 Pro with a 7nm chip made by Chinese firm SMIC. Despite being caught offguard, Commerce Secretary Gina Raimondo voiced her belief that China still lacked the ability to produce such chips at scale.

    “I was obviously upset when I saw the [Huawei announcement for the Mate 60],” Raimondo said. “The only good news I can offer is that we have no evidence they can produce 7 nanometers at scale.”

    Beijing’s deadline to phase out AMD and Intel from network equipment would seem to indicate that Chinese officials believe they are close to being able to end their dependence on foreign chips.

    The move is sure to hit AMD and Intel hard, as WSJ points out, since the two companies provide the bulk of the chips used in China’s networking equipment. The news also comes at a time when Intel is looking to revitalize its foundry business and is trying to gain customers around the world.

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