🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Intel, AMD stock drop on report China is phasing out foreign chips

Published 04/12/2024, 05:05 AM
Updated 04/12/2024, 05:07 AM
© Reuters Intel, AMD stock drop on report China is phasing out foreign chips

China is intensifying efforts to reduce its reliance on foreign technology by aiming to eliminate American chip makers from its telecom infrastructure by 2027, according to the Wall Street Journal.

The country's Ministry of Industry and Information Technology (MIIT) earlier this year directed major telecom carriers to phase out foreign processors that are crucial to their networks by the specified deadline.

This move is expected to impact American chip giants Intel Corp (NASDAQ:INTC) and Advanced Micro Devices (NASDAQ:AMD).

Shares in these two companies fell 1.3% and 2%, respectively, in early New York trading on Friday.

State-owned mobile operators have been instructed to assess their networks for non-Chinese semiconductors and develop plans to replace them, the report added.

The Chinese government's past efforts to reduce reliance on foreign semiconductors were hindered by the lack of domestically produced chips of comparable quality. However, recent improvements in the quality and stability of local chips have made it feasible for telecom carriers to switch to domestic alternatives.

U.S. lawmakers have imposed restrictions on Chinese telecom equipment and high-end AI chips from American chip companies, citing national security concerns.

Chinese authorities have long sought to bolster domestic supply chains and reduce reliance on foreign suppliers. Similar directives in other sectors have already led to a gradual loss of market share for U.S. software and hardware firms in China.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.