The Chinese government has issued orders to local telecommunications companies to stop using foreign-made chips such as Intel and AMD in communication equipment by 2027. according to a Wall Street Journal report.
The directive given by China's Ministry of Industry and Information Technology is seen as a response to the actions of the United States and its allies that have banned Huawei and ZTE communications equipment from being used in their countries. Last month China issued guidelines to prevent the use of Intel and AMD chips in state-owned computers. This will definitely have an impact on Intel and AMD who generate up to 27% of their annual revenue in the Chinese market.
China has made huge investments to develop their semiconductor industry since America started putting local companies on the entity list. The biggest impact can be seen on Huawei which is almost down due to the ban on access to chip manufacturing.
Last year Huawei came back with a bang after successfully producing its own new chips and also returned to selling 5G devices. With the help of SMIC, Huawei modified old foundry equipment to produce 7nm technology chips that were previously considered impossible by Western analysts.