(IntegrityPress.org) – China is beginning to phase out the use of advanced US-made AMD and Intel microprocessors in its government computers in an attempt to technologically decouple from U.S.-based manufacturers. The news sent shockwaves through AMD and Intel stockholders on March 25.
The Financial Times reported the recently released guidelines the day prior. The Chinese Communist Party (CCP) is also restricting the use of Windows operating systems as well as software for databases like Microsoft Excel. The news comes after China had previously banned the use of Apple iPhones at government agencies and businesses.
The move is an attempt to encourage domestic technological development after U.S. authorities outlawed the export of advanced technology to China including Nvidia and AMD’s latest advanced computer chips and the manufacturing equipment used to produce them. The U.S. also banned the import of Huawei-manufactured telecoms technology and has encouraged other nations to similarly block them, citing security risks.
Intel’s stock dropped 1.7% to 41.83 on Monday after recovering from a low point of 40.57 earlier in the day. AMD similarly dropped 4.3% to 172 before recovering and ending up only down 0.6%. AMD has been in decline since March 8 when it was at a record high of 227.30. Shares have continued to decline following the announcement of Nvidia’s new AI chip.
Intel is in a much more dicey position with nearly a third of its sales (27%) in 2023 coming from China, according to a Bernstein analysis. AMD, on the other hand, only took in 15% of its sales from China. The amount isn’t trivial, however, at $3.4 billion for the year.
The news caused additional ripples on Wall Street; Microsoft dropped 1.4% on Monday to 422.86 after gaining 3% last week hitting a new record high of 428.74 amid announcements about AI advancements and following a Microsoft AI event.
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