Intel, AMD Fall on Report China to Limit Use of US Chips
(Bloomberg) -- Intel Corp. and Advanced Micro Devices Inc. shares fell Monday after a report that China has adopted new guidance to limit the use of US-made microprocessors and servers in government computers.
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Intel was down 2.9% and AMD slipped less than 1% in New York.
The new rules mean that chips made by the companies will be gradually replaced with local alternatives, the Financial Times reported on Sunday, citing guidelines unveiled by the finance ministry and the Ministry of Industry and Information Technology on Dec. 26.
Software provided by US companies including Microsoft Corp. are also set to be replaced, the FT said. Still, for now there remains some flexibility for government agencies and state-owned enterprises to buy computers powered by foreign processors servers, the newspaper reported citing two unnamed procurement officials.
Microsoft and Intel declined to comment to the FT, while AMD did not respond to a request for comment.
China has been pushing to eradicate key overseas technology from within its most sensitive organs over the past years. In 2022, it ordered central government agencies and state-backed corporations to replace foreign-branded personal computers with domestic alternatives within two years.
Last week, Bloomberg reported that the US is considering blacklisting a number of Chinese semiconductor firms linked to Huawei Technologies Co., marking another escalation in a campaign to ringfence and curtail Beijing’s AI and semiconductor ambitions.
Read more: How China Aims to Counter US Efforts at ‘Containment”: QuickTake
(Updates shares)
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