China Tells Telecom Carriers To Phase Out Foreign Chips in Blow To Intel, AMD

China's push to replace foreign technology is now focused on cutting American chip makers out of the country's telecoms systems. From a report: Officials earlier this year directed the nation's largest telecom carriers to phase out foreign processors that are core to their networks by 2027, a move that would hit American chip giants Intel and Advanced Micro Devices, people familiar with the matter said. The deadline given by China's Ministry of Industry and Information Technology aims to accelerate efforts by Beijing to halt the use of such core chips in its telecom infrastructure. The regulator ordered state-owned mobile operators to inspect their networks for the prevalence of non-Chinese semiconductors and draft timelines to replace them, the people said.

In the past, efforts to get the industry to wean itself off foreign semiconductors have been hindered by the lack of good domestically made chips. Chinese telecom carriers' procurements show they are switching more to domestic alternatives, a move made possible in part because local chips' quality has improved and their performance has become more stable, the people said. Such an effort will hit Intel and AMD the hardest, they said. The two chip makers have in recent years provided the bulk of the core processors used in networking equipment in China and the world.

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