shares of Advanced Micro Devices and intel Then soaked on Friday The Wall Street Journal reported China has announced that it is ordering the country’s largest telecommunications carriers to stop using foreign chips.
Earlier this year, Chinese authorities issued a directive to replace communications systems with non-Chinese core processors by 2027, the magazine reported, citing people familiar with the matter. The report states that this mandate will impact AMD and Intel.
Both stocks were down as much as 4% on Friday afternoon.
Intel declined to comment on the report. AMD did not respond to requests for comment.
China accounts for 27% of Intel revenue It will become the company’s largest market in 2023. AMD generated 15% of its revenue from China, including Hong Kong. last year. The world’s second-largest economy’s dependence on China continues to grow, despite U.S. regulations aimed at curbing chip exports to the country and China’s efforts to reduce its dependence on foreign technology. This highlights the continued importance of gender.
China set new guidelines in December to remove U.S. chips from government computers and servers and block processors from AMD and Intel, the Financial Times reported last month.
And in October 2022, the United States enacted rules aimed at restricting China’s access to advanced American chips, particularly those critical to artificial intelligence technology. Late last year, the US announced new regulations to prevent further sales of AI chips to China, aiming to close loopholes identified in previous orders.
Bloomberg reported last month that AMD has been unable to get U.S. approval for AI chips it designed for China and will need to apply for an export license.
Intel has reportedly weathered pressure from AMD to stop selling hundreds of millions of dollars worth of laptop chips to Chinese telecommunications company Huawei, which is under sanctions from the United States.