China reportedly orders state-run mobile operators to replace foreign chips

As early as 2019, the FCC prohibited U.S. companies that were beginning to deploy 5G networks at that time from using subsidies to purchase equipment from companies considered to be national security threats. Chinese manufacturers Huawei and ZTE top the list.Now, China is implementing similar measures: According to wall street journalThe Ministry of Industry and Information Technology has ordered state-owned mobile operators, including the country’s two largest, to phase out foreign chips.

The regulator has reportedly asked China Mobile and China Telecom, as well as all other state-owned players, to check their networks for the presence of non-locally manufactured semiconductors. It then asked them to determine a timeline for replacing them.this periodical Sources said that due to the improvement in the quality and performance of domestic chips in the past few years, it is now possible to switch to domestic chips. Chinese companies such as Huawei have been forced to design their own semiconductors to become self-sufficient in the wake of trade sanctions in case they can no longer import chips from the United States and its allies. The Chinese government also supports their efforts and has raised $40 billion to help the domestic semiconductor industry.

China’s latest move comes after it banned the use of Intel and AMD processors in government computers. Previously, China also banned all government agencies and public institutions from using U.S.-made technology and banned local companies from purchasing chips made by U.S. memory maker Micron Technology. Intel and AMD are likely to suffer significant losses from this latest development, as they supply most of the chips used by mobile networks worldwide. China is also Intel’s largest market in 2023, accounting for 27% of its revenue. In addition to losing some of their largest customers, the companies now must face competition from Chinese manufacturers.

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