Intel and AMD processors have been banned from China

China has banned Intel and AMD processors from China amid new guidelines to favor ‘domestic solutions’ for technology.

The new rules prevent usage of Western-made processors in China’s government computers and servers. Microsoft Windows is also banned with other foreign databases, with China favoring domestic solutions.

The new guidelines were introduced in December last year, and have been quietly implemented.

Government agencies are now mandating ‘safe and reliable’ domestic replacements. A list was released which approves 18 processors, inclusive of chips from Huawei and Phytium.

It should be noted that both of these companies are currently banned in the US.

Intel and AMD shares recently fell following the news of the new guidelines. Intel was down 2.9%, and AMD fell less than 1%

China accounted for 27% of Intel’s sales in 2023, as 15% also made up AMD’s revenue for the year. This has to be China’s most aggressive move in terms of US technology restriction.

However, China wasn’t the first to pull the trigger. The US has banned a number of Chinese companies as well, ranging from chip manufacturers to aerospace firms.

The Biden Administration also banned US companies such as NVIDIA from selling their AI models and chips to China.

Meanwhile, Chinese companies like Baidu, Huawei, and OPPO have already begun designing semiconductors.

This suggests that the country’s preparing for a future where they can’t import from other countries.