China Tells Telecom Carriers to Phase Out Foreign Chips by 2027 (2024)
China has reportedly ordered its state-run telecom carriers to phase out foreign-made processors, including those from Intel and AMD, by 2027. The directive aims to accelerate the country's shift toward domestic chip suppliers amid ongoing technology tensions with the U.S.
Background
- The Chinese government has directed state-owned telecom carriers (China Mobile, China Telecom, China Unicom) to replace foreign-made microprocessors—primarily from Intel and AMD—in their core networks with domestic chips over the next few years, targeting completion by 2027.
- This is part of a broader push for technological self-sufficiency amid escalating US-China tech tensions. Washington has restricted Chinese access to advanced semiconductors and chipmaking equipment, citing national security concerns; Beijing is responding by accelerating its domestic chip industry.
- Intel and AMD dominate the global PC and server CPU market; Chinese alternatives (e.g., from Huawei's HiSilicon, Loongson, or Phytium) are less powerful but seen as sufficient for telecom infrastructure tasks.
- The impact is immediate financial risk for Intel and AMD (China is a major market), and a longer-term signal that China is serious about decoupling critical infrastructure from US technology, even at the cost of performance or efficiency.