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China Orders Telecom Carriers to Ditch Intel, AMD Chips by 2027

In a move to bolster domestic technology and reduce reliance on foreign imports, Chinese authorities have instructed the country’s largest telecom carriers to phase out Intel and AMD processors from their networks by 2027. This directive, issued by the Ministry of Industry and Information Technology, mandates state-owned operators to conduct thorough audits of their networks to identify non-Chinese processors and formulate comprehensive replacement plans.

This decision comes as part of China’s broader strategy to enhance technological self-sufficiency amidst escalating trade tensions with the United States. The country has been actively promoting the adoption of domestically developed technologies, particularly in sensitive sectors like telecommunications.

China represents Intel’s largest market, accounting for over 27% of the company’s total revenue in 2023. In response to the government’s directive, Chinese telecom operators have been increasingly turning to locally manufactured processors, driven in part by advancements in the quality and reliability of domestically produced chips.

The move is expected to have a significant impact on Intel and AMD, potentially disrupting their supply chains and revenue streams. However, it could also provide an opportunity for domestic chipmakers to gain market share and establish themselves as global players.

The transition away from foreign processors aligns with China’s long-term vision of technological independence and self-reliance. As the country continues to invest heavily in research and development, it is poised to play an increasingly prominent role in shaping the global technology landscape.

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