China Ditching American Chips and Software to Promote Local Tech

According to Reuters, China has unveiled guidelines to phase out U.S. microprocessors from tech giants like Intel and AMD from government personal computers and servers.

The procurement directives also aim to replace Microsoft’s Windows OS and foreign database software with domestic alternatives.

Is China Really Phasing Out Intel and AMD Chips?

The short answer is yes. The report indicates that Chinese government agencies above the township level have been instructed to prioritize Chinese processors and operating systems when making purchases/procurements.

This directive is part of China’s broader effort to reduce reliance on foreign technology and promote domestic alternatives like SMIC, HiSilicon, YMTC, and UNISOC.

What Does This Mean for Microsoft Windows?

The procurement guidance doesn’t stop at microprocessors; it also seeks to sideline Microsoft’s Windows operating system in favor of Chinese-made alternatives – “Kylin Linux”.

This move could potentially deal a significant blow to Microsoft’s dominance in the Chinese market, as the government is a major customer of software and hardware solutions.

Preferential Treatment to Chinese Tech

In late December, China’s industry ministry released three separate lists of CPUs, operating systems, and centralized databases deemed “safe and reliable” for three years after publication.

Unsurprisingly, all the listed products were from Chinese companies, signaling the country’s commitment to promoting its homegrown tech solutions.

Impact the Global Tech Landscape

China’s push for technological self-sufficiency could have far-reaching consequences for the global tech industry.

As one of the world’s largest markets, a shift towards domestic alternatives could pose a significant challenge for foreign tech giants like Intel, AMD, and Microsoft, who have long relied on China as a lucrative customer base.