Implications of China’s New IT Guidelines for Intel, AMD, and Microsoft: What You Need to Know

According to a report by the Financial Times, China has implemented guidelines aimed at phasing out the use of U.S. microprocessors, specifically those from Intel and AMD, in government computers and servers. The procurement guidelines also advocate for reducing reliance on Microsoft’s Windows operating system and foreign-made database software, in favor of domestic alternatives. Government agencies at or above the township level are instructed to prioritize “safe and reliable” processors and operating systems in their procurement processes.

In late December, China’s industry ministry released a statement featuring three separate lists of CPUs, operating systems, and centralized databases considered “safe and reliable” for three years. Notably, all options listed were from Chinese companies, as confirmed by checks from Reuters.

Intel and AMD have not yet responded to requests for comment from Reuters. The U.S. government has been actively working to boost domestic semiconductor production and reduce dependence on countries like China and Taiwan, notably through initiatives like the Biden administration’s 2022 CHIPS and Science Act. This legislation aims to strengthen the U.S. semiconductor industry by providing financial assistance for domestic chip production, including subsidies for the manufacturing of advanced chips.