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The Great Chinese Chip Upheaval: AMD and Intel Brace for Impact as China Opts for Homegrown Tech in Government Computers

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US China chips Photo by Fahroni on Shutt

Chinaโ€™s Bold Move

The landscape of microprocessors is about to shift dramatically as China unveils new guidelines aimed at replacing the stalwarts of Intel Corp. INTC and Advanced Micro Devices, Inc. AMD. The grand plan? Ditching these US-made chips from government computers in favor of homegrown technology.

The Road Ahead

What transpired: Chinaโ€™s strategic playbook includes a phased exit strategy for foreign technology, with Microsoftโ€™s Windows operating system and foreign-made database software facing the chopping block too. As the Financial Times reports, the empire intends to usher in a new era where domestic solutions reign over imported rivals.

This decree, freshly minted by the Finance Ministry and the Ministry of Industry and Information Technology (MIIT) on December 26th, marks a remarkable milestone for China. With escalating global tensions serving as the backdrop, this move echoes similar sentiments stirring in the United States amid ongoing geopolitical frictions.

In adherence to the altered directive, government bureaus and party organs must now factor in โ€œsafe and reliableโ€ processors and operating systems when making procurement decisions. The China Information Technology Security Evaluation Center, the stateโ€™s testing authority, has unboxed its premier catalogue of endorsed processors and operating systemsโ€”every single one hailing from Chinese pedigrees.

This paradigm shift away from foreign hardware is poised to trigger rumbles within market dominions, particularly impacting US behemoths such as Intel and AMD, known for their lionโ€™s share in the Chinese techscape. The shift is projected to metamorphose into full swing come 2027.

In response to queries, both Microsoft and Intel opted for the silent treatment, with AMD maintaining a stoic silence, refraining from comment.

Significance Unveiled

Why does it matter: In a saga not entirely unforeseen, China laid the groundwork as early as May 2022. It rallied its central government agencies and state-backed heavyweights to bid adieu to all foreign PC hardware and operating systems, making room for indigenous alternatives within a two-year span. This drastic push is a manifestation of Beijingโ€™s decade-old endeavor to oust imported tech in exchange for locally-hewn alternatives, catalyzed by burgeoning privacy qualms.

A symbiosis between geopolitics and technology echoes through this saga, accentuating the clash of titans vying for dominance. As Chinese innovation fiercely asserts itself on the global stage, the echo chamber of international relations amplifies with reverberating implications.

Curious for more musings on what the future beholds? Glimpse into Benzingaโ€™s Consumer Tech arena by navigating here.

Courtesy of Fahroni via Shutterstock

Explore further insights: Potential sparring in space? Russiaโ€™s cautionary tale unfolds as they eyeball Elon Muskโ€™s SpaceX with seasoned suspicion, pondering the legitimacy of targeting satellites involving a dash of espionage. Brace yourself for skyward upheavals!

Fabricated by Benzinga Neuro, Sculpted by
Shivdeep Dhaliwal

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