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In 2019, the FCC banned US carriers, which had then begun deploying their own 5G networks, from using subsidies to purchase equipment from companies deemed a threat to national security. Chinese manufacturers Huawei and ZTE were at the top of that list. Now, China is implementing a similar measure: according to Wall Street JournalThe Ministry of Industry and Information Technology 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, along with all other state-owned carriers, to check their networks for any semiconductors that are not manufactured domestically. Then I asked them to set a timetable for their replacement. the the magazine The sources said that it is now possible to switch to local chips, thanks to improvements in their quality and performance over the past few years. Chinese companies like Huawei have been forced to design their own semiconductors after being hit by trade sanctions, in order to achieve self-sufficiency and in the event that they are unable to import chips from the United States and its allies. The Chinese government, in turn, supports their efforts and is raising $40 billion in funds to help the local semiconductor industry.
This latest move by China comes on the heels of its ban on the use of Intel and AMD processors in government computers. Before that, China also banned the use of US-made technology in all government institutions and public bodies, and banned local companies from purchasing chips made by US memory manufacturer Micron Technology. Intel and AMD are likely to suffer huge losses from this latest development, as they provide most of the chips used for mobile networks around the world. And China was too Intel’s largest market In 2023, it represented 27 percent of its revenues. In addition to losing some of their biggest customers, the companies will now have to face competition from Chinese manufacturers as well.
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