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Tech Security AMD and Intel Could Be Screwed By New Chinese Mandate Forbidding Foreign Innovation

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Tech Security AMD and Intel Could Be Screwed By New Chinese Mandate Forbidding Foreign Innovation

by Jax Howe
January 9, 2020
in Technology
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Tech Security AMD and Intel Could Be Screwed By New Chinese Mandate Forbidding Foreign Innovation
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Tech Security

Image: Getty

Following the < a data-ga ="[["Embedded Url","Internal link","https://gizmodo.com/major-hardware-companies-to-stop-supplying-huawei-after-1834886298",{"metric25":1}]] href=" https://gizmodo.com/major-hardware-companies-to-stop-supplying-huawei-after-1834886298" > U.S. restriction that restricted domestic companies from supplying equipment to Huawei back in May, the technological Cold War in between the U.S. and China just got a bit more intense now that Beijing has ordered all Chinese government and public-facing workplaces to replace any devices featuring foreign elements.

According to < a data-ga="[["Embedded Url","External link","https://www.ft.com/content/b55fc6ee-1787-11ea-8d73-6303645ac406",{"metric25":1}]] href=" https://www.ft.com/content/b55 fc6ee- 1787- 11 ea-8d73- 6303645 a/c406” > The Financial Times, China’s push to remove its reliance on foreign tech becomes part of a larger movement stimulated on by previous policies like the Cyber Security Law that was passed back in 2017 and the Chinese federal government’s overarching< a data-ga="[["Embedded Url","External link","https://www.washingtonpost.com/news/monkey-cage/wp/2018/05/03/what-is-made-in-china-2025-and-why-is-it-a-threat-to-trumps-trade-goals/",{"metric25":1}]] href=" https://www.washingtonpost.com/news/monkey-cage/wp/2018/05/03/ what-is-made-in-china-2025- and-why-is-it-a-threat-to-trumps-trade-goals/ "> Made in China2025 instruction

Nevertheless, after Huawei was blacklisted from purchasing tech made by U.S. companies, China is obviously stepping up its efforts to ditch tech sourced from outside its borders.

The Financial Times states that based upon estimates from experts at China Securities, this would suggest the Chinese government would need to change in between20to30 million pieces of hardware. Replacements are slated to begin next year under the “3-5-2” policy, which got its label due strategy’s timeline of replacing 30 percent of foreign gadgets in 2020, 50 percent in 2021, and the last 20 percent in2022

The business that will most likely be hardest hit by this plan are large computer and server makers like HP and Dell and significant chip makers like Intel and AMD. On the other hand, Lenovo could see a huge uptick in sales, as < a data-ga ="[["Embedded Url","External link","https://www.gartner.com/en/newsroom/press-releases/2019-07-11-gartner-says-worldwide-pc-shipments-grew-1point5percent-in-second-quarter-of-2019",{"metric25":1}]] href="https://www.gartner.com/en/newsroom/press-releases/2019-07-11- gartner-says-worldwide-pc-shipments-grew-1point5percent-in-second-quarter-of -2019" > it’s already one of the 3 largest PC makers worldwide ( together with HP and Dell ), presuming it can discover appropriate Chinese-made replacements for the Intel and AMD processors Lenovo normally uses in its systems.

Microsoft might also take a whipping since even though it developed a special Chinese Federal government Edition of Windows 10 in 2017, it appears that’s not quite good enough now that China is intending to change Windows with a real homegrown operating system.

Either method, the technological divide between east and west continues to grow, and with Trump in office and both sides retaliating versus each other, it’s difficult to predict how far all this Cold War can actually go

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Jax Howe

Jax Howe

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