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China restricts use of Intel and AMD processors in government computers, FT reports

A central processing unit (CPU) semiconductor chip is exhibited amid flags of China and U.S., in this illustration photo dated February 17, 2023

March 24 (mod1s) - China has established instructions to phase out U.S. microprocessors from Intel (INTC.O), opens new tab and AMD (AMD.O), opens new tab from government personal computers and servers, the Financial Times reported on Sunday. 

The procurement advice also tries to sideline Microsoft's (MSFT.O), opens new tab Windows operating system and foreign-made database software in favor of local solutions, the newspaper added. 

Government entities above the township level have been advised to incorporate criteria requiring "safe and reliable" processors and operating systems when making acquisitions, the newspaper claimed.

China's industry ministry in late December released a statement with three distinct lists of CPUs, operating systems and centralised database considered "safe and reliable" for three years after the publishing date, all from Chinese enterprises, Reuters checks found. 

The State Council Information Office, which handles media questions for the council, China's cabinet, did not immediately reply to a faxed request for comment.

Intel and AMD did not immediately reply to Reuters request for comment. 

The U.S. has been attempting to expand local semiconductor production and minimize dependency on China and Taiwan via the Biden administration's 2022 CHIPS and Science Act. 

It is aimed to enhance U.S. semiconductors and provides financial help for local manufacture with subsidies for development of sophisticated chips.


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