Daily Management Review

Chinese authorities require telecom operators to abandon foreign chips


The Wall Street Journal reports that the biggest telecom service providers in China are now required by law to discontinue their use of foreign processors.

Daniel Foster
Daniel Foster
The relevant directive was issued earlier this year by the Chinese Ministry of Industry and Information Technology, according to sources for the publication.

The sources note that American chip manufacturers Intel Corp. and Advanced Micro Devices Inc. (AMD) will be negatively impacted by the Chinese government's decision. These two businesses have provided the majority of the CPUs used in networking equipment in China and other countries in recent years.

According to the Wall Street Journal, Intel and AMD have thousands of servers that are purchased by China Mobile and China Telecom, two major Chinese telecom companies, for use in their data centers. These servers are required to make sure that mobile user data is stored and that telecom equipment communicates with base stations.

source: wsj.com