Recently, China has made a bold move by introducing guidelines to phase out U.S. microprocessors from companies like Intel and AMD, along with sidelining Microsoft’s Windows operating system and foreign-made database software in government personal computers and servers. This shift in procurement guidance aims to prioritize domestic options over foreign ones.
According to a report by the Financial Times, government agencies above the township level in China have been instructed to incorporate criteria that prioritize the use of “safe and reliable” processors and operating systems from Chinese companies when making purchases. The guidelines also include lists of CPUs, operating systems, and centralized databases that are deemed “safe and reliable” for a period of three years, all from domestic sources.
This decision by China’s industry ministry could have significant implications for U.S. companies like Intel, AMD, and Microsoft. By phasing out their products from government use, these tech giants may face a decline in market share in China, a major market for technology products. The move aligns with China’s broader strategy to enhance its domestic technological capabilities and reduce reliance on foreign entities.
While China’s directives have been met with silence from Chinese authorities, U.S. companies like Intel, AMD, and Microsoft have not issued official statements in response. It remains to be seen how these companies will navigate the changing landscape in China and whether they will seek to challenge these guidelines through diplomatic channels or other means.
This development comes at a time when the U.S. government is also taking steps to boost domestic semiconductor production and reduce its dependence on countries like China and Taiwan. The Biden administration’s 2022 CHIPS and Science Act aims to support U.S. semiconductor manufacturing through financial aid and subsidies for the production of advanced chips. It is part of a broader effort to strengthen America’s technological leadership and competitiveness in the global market.
China’s decision to phase out U.S. microprocessors and software from government use reflects a larger trend of countries seeking to enhance their domestic technological capabilities and reduce reliance on foreign suppliers. The impact of these guidelines on U.S. companies and the broader tech industry remains to be seen, but it underscores the importance of innovation and competitiveness in the rapidly evolving landscape of technology and geopolitics.