AMD shares, Intel shares lighter: China appears to want to replace government computers with Western chips | 03/25/24

According to one report, China has begun replacing computers used by the authorities with processors from American companies AMD (Advanced Micro Devices) and Intel.

As the Financial Times reported on Sunday, Chinese officials are now implementing the corresponding directive issued in December. This states that “safe and reliable” processor and operating system standards must be considered when purchasing computers. This would also replace Microsoft Windows operating system and database software manufactured abroad with domestic alternatives. At the same time, the transformation of state-owned enterprises is also being pushed forward.

Citing two sources familiar with the events, the Financial Times reported that government agencies and state-owned companies currently receive a certain degree of flexibility when purchasing computers with foreign processors. China – like other countries – has been working to remove key technologies from abroad from its jurisdiction for several years. According to previous reports, officers were also ordered to stop using iPhones at work.

The United States is trying to use the restrictions to prevent China from obtaining highly advanced chips that could also be used for military purposes. China is trying to develop its own chip technologies in the face of US measures – and has recently made some progress.

In Nasdaq trading, AMD fell 0.57% to $178.63 at the end of trading. Intel shares also lost 1.74%, reaching $41.83.

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Beijing (dpa-AFX)