Intel and AMD, two major players in the semiconductor industry, are bracing for the repercussions of China’s latest directive. Following the public disclosure of the report, both companies witnessed a more than 1.5% decline in their shares during premarket trading.
Intel declined to comment on the matter. And AMD remained silent in response to requests for comment. The silence from these tech giants underscores the sensitivity of the issue and the potential ramifications for their operations in China.
China’s Ministry of Industry and Information Technology has been proactive in implementing the orders roadblocking state-owned mobile operators to scrutinize their networks for non-Chinese semiconductors.
Additionally, guidelines have been introduced to phase out U.S. chips from government personal computers and servers.
The impact of this new policy is already evident in procurement trends. Chinese telecom carriers are increasingly opting for domestic chip options.
Improved quality and stability of local chips have facilitated this transition, signaling China’s progress in bolstering its semiconductor industry.
