China is escalating the tech war. New reports in The Financial Times indicate Beijing has ordered state entities to phase out Intel and AMD chips, along with Microsoft’s Windows OS, in favor of domestically produced alternatives. This move underscores a deepening drive for technological self-reliance as tensions with the US soar.
The potential impact is significant. Intel and AMD dominate the global PC processor market, and both rely on Taiwanese chipmaker TSMC. If China’s orders extend to the private sector, the fallout for these chip giants could be substantial, says the FT.
Chinese sources cited in the report say Beijing aims to “enhance manufacturing and design capabilities,” primarily by supporting domestic chipmaker SMIC and design firms like Huawei and Phytium. This push mirrors recent procurement guidelines prioritizing “secure and trustworthy” Chinese-made technology.
The stakes are high. The approved processor list currently excludes all US-designed chips, while operating systems are limited to Linux variants. This signals a potential shift towards hybrid chip architectures that blend Western and domestic designs to reduce dependence on US technology.
This move comes amidst reports that the US is poised to tighten restrictions on leading Chinese chipmakers, further fueling the rivalry. Companies like SMIC and YMTC are already facing severe limitations imposed by the US, hobbling their access to vital equipment and technologies.
China’s actions are a clear warning shot. The battle for dominance in the critical semiconductor industry is intensifying, with both sides seeking to break technological dependencies and secure their supply chains. The repercussions for tech companies caught in the crossfire will be profound.
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