China Ditches Intel and AMD
The Chinese government is set to replace Intel and AMD processors with local innovations and ban the use of Microsoft’s Windows operating system in state enterprises. The prohibition extends to all foreign database management software as well.
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The Chinese government is set to replace Intel and AMD processors with local innovations and ban the use of Microsoft's Windows operating system in state enterprises. The prohibition extends to all foreign database management software as well.
In their place, the government endorses products from Huawei or Phytium, companies that have long been on the US blacklist, with a preference for operating systems like Linux. This move partly reflects the US's own restrictions on exporting advanced technology to China, particularly in areas related to artificial intelligence.
The full transition to these domestic alternatives is anticipated to take around three years. During this period, companies are required to provide quarterly updates on their progress in swapping out their technological infrastructure. Initial damage assessments predict a loss of 27% of Intel's global sales and approximately 15% for AMD, though both companies have refrained from commenting.
Previously, the US government announced substantial investments in Intel's processor production facilities within the United States aimed at factory upgrades and the construction of new facilities. Under the agreement, government investments could reach $8.5 billion, with counter-investments potentially hitting $100 billion.
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