China introduced guidelines that aim to prevent the use of US processors from Intel and AMD. The new rules also want to block Microsoft Windows and other foreign database products in favor of domestic solutions, reported The Financial Times on Sunday.
All government agencies above the township level must have computers and servers with hardware deemed “safe and reliable.” The list of approved hardware includes chips from Huawei and Phytium, both banned in the United States.
The move could have a significant financial effect on both chip companies. According to FT, 27% of Intel’s $53 billion in sales were in China, while AMD’s had 15% of its $23 billion revenue in China. However, these numbers do not include any info how many chips are actually used in the government sector.
The move is seen as a retaliation to the United States ban of Chinese chip manufacturers from working with US companies and blocked Nvidia from selling AI-related chips to China.
The United States hosts all major players in chip design, along with Japan and the Netherlands, but Chinese companies like Huawei, Xiaomi, and Oppo are already developing their own solutions.
The State Council Information Office of China, AMD, and Intel did not respond to a request for comment by Reuters.
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