China Implements Plan to Exclude Intel and AMD Chips from Government Computers

New Guidelines Aim to Reduce Reliance on US Semiconductor Technology

China has unveiled new guidelines aimed at gradually phasing out US microprocessors from Intel and AMD in government personal computers and servers, according to a report by the Financial Times published on Sunday.

The procurement directives also seek to diminish reliance on Microsoft’s Windows operating system and foreign-made database software, favoring domestic alternatives, as per the report.

Government agencies above the township level have purportedly been instructed to include criteria mandating the use of “safe and reliable” processors and operating systems in their procurement processes.

In late December, China’s industry ministry issued a statement containing three separate lists of CPUs, operating systems, and centralized databases deemed “safe and reliable” for a period of three years from the publication date, all sourced from Chinese companies, Reuters reported.

This move by China comes amid ongoing efforts by the US to bolster domestic semiconductor production and reduce dependence on China and Taiwan. The Biden administration’s 2022 CHIPS and Science Act, designed to enhance US semiconductor capabilities, includes financial incentives for domestic chip production, including subsidies for advanced chip manufacturing.

Recent reports indicate that the US is contemplating blacklisting several Chinese semiconductor firms associated with Huawei. These entities, previously identified as chipmaking facilities acquired or under construction by Huawei, may face sanctions, according to Bloomberg.

Among the companies potentially affected are chipmakers Qingdao Si’En, SwaySure, and Shenzhen Pensun Technology Co., or PST. Additionally, the Biden administration is reportedly considering sanctions on ChangXin Memory Technologies Inc, China’s leading memory chipmaker.

As geopolitical tensions continue to influence the semiconductor industry, China’s latest measures signal a strategic shift towards self-reliance and indigenous innovation in semiconductor technology.

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