Intel and AMD CPUs can’t be used in government buildings or servers. This is a big step for China in its quest for technological freedom. The move is part of a national plan to react to US penalties and rely less on parts made in other countries. In its place, China has cleared 18 processors made by Loongson and Phytium, two Chinese companies that are on the US’s “blacklist.”
The Guideline and the Change
Late last year, on December 26, the Chinese Finance Ministry and the Ministry of Industry and Information Technology put out instructions together. These rules say that AMD and Intel CPUs must be replaced with ones made in the United States. Companies run by the government have also been told to do the same, and by 2027, all choices will be made in the country.
Effects on the Market and Tech Giants
Tech giants like Intel, AMD, and Nvidia depend on China as a key market. Intel made $54 billion in sales in China last year, which is 27% of its total sales. AMD made $23 billion in sales in China. The government’s move to stop buying CPUs made in other countries could have a big effect on the profits of these companies.
Problems and Being Able to Make Your Own
China wants to depend more on CPUs that it makes itself, but it has a lot of problems to solve. A lot of money needs to be spent on research and development (R&D) to make chips that are competitive on a large scale. Even though stolen technology could be used for reverse engineering, manufacturing plants still need a lot of things from other countries, like raw materials and technology. Even though they are based in China, companies like SMIC and HLMC still need to buy from other countries.
The Zhaoxin KX-7000 and What’s Next
The Zhaoxin KX-7000, China’s own CPU, is thought to be six years behind, but it uses x86 design. As long as people keep using CPUs made in other countries, they probably won’t be able to become completely self-sufficient any time soon. But China’s drive to make chips that can compete could change the way semiconductors are made around the world.
Compared to Russia and Licenses to Export
The US and EU have put bans on Russia, and China is also trying to rely on CPUs that it makes itself. This shows how global problems can arise around technology. It’s interesting that Intel has an export license with Huawei. AMD tried to fight this, but failed.
The Way Forward
China will need a lot of time and money to get to a point where it can develop its own technologies. The country may not switch to fully homegrown CPUs right away, but its determination to be self-sufficient marks a huge shift in the tech industry around the world.
Stay tuned for more news as China figures out how to deal with the problems that come with using its own CPUs. 🌐🔌
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