In a move that underscores the escalating tech rivalry between the United States and China, the Chinese government has set forth new guidelines to eliminate the use of U.S. microprocessors from Intel and AMD in its government computers and servers. This decision, as reported by the Financial Times, is a significant step towards China’s technological self-reliance and a clear response to the U.S. efforts to bolster its own semiconductor industry.
The guidelines not only target the hardware but also the software, with a push to replace Microsoft’s Windows operating system and foreign-made database software with domestic alternatives. This pivot to ‘safe and reliable’ technology is mandated for government agencies above the township level, which are now required to prioritize these criteria in their procurement processes.
The Ministry of Industry and Information Technology of China issued a statement in late December, which included three separate lists of CPUs, operating systems, and centralized databases deemed ‘safe and reliable’ for a period of three years post-publication. Notably, all the listed products are from Chinese companies, indicating a clear direction towards national products over foreign technology.
This development comes amidst the U.S. government’s largest financial award under the CHIPS and Science Act, aimed at reducing reliance on foreign semiconductor production. The act provides federal incentives and subsidies to tech companies to increase the production of advanced chips in the U.S. Intel, for instance, has been a significant beneficiary, receiving about $20 billion in direct funding, federal loans, and investment tax credits.
Intel’s ambitious investment plans in the U.S., totaling $100 billion over five years, include building new factories and modernizing existing facilities, as well as expanding research and development. These investments are critical not only for economic growth but also for national security, as they support the production of advanced artificial intelligence (AI) chips.
The Chinese government’s decision to block Intel and AMD chips is a clear indication of the growing emphasis on developing and utilizing homegrown technology. This move is not isolated but part of a broader strategy that has seen the development of a domestic OS to reduce reliance on foreign-made Windows and macOS, as well as efforts by Chinese companies like Huawei to build a semiconductor manufacturing network within the country.
China’s semiconductor capabilities are on the rise, with companies like SMIC poised to manufacture 5nm process chips. The policy to phase out Intel and AMD chips from government use is a continuation of this trend, leveraging the ‘safe and reliable’ products listed by the Ministry of Industry and Information Technology.
While Intel declined to comment on the report, and AMD did not immediately respond, the implications of China’s guidelines are far-reaching. They represent a significant shift in the global tech landscape, with potential impacts on international trade, cybersecurity, and the balance of technological power. As the world watches this unfolding narrative, it’s clear that the race for tech supremacy is accelerating, with national security and economic prosperity at stake. The Chinese government’s latest move is a bold statement of intent, signaling a future where technological self-sufficiency is not just an aspiration but a reality.
