AMD, Intel Face Setback As China Moves To Ditch Their Chips, Microsoft Windows In State Computers
Portfolio Pulse from Benzinga Neuro
China has announced guidelines to phase out US microprocessors from Intel Corp. (INTC) and Advanced Micro Devices, Inc. (AMD) in government PCs and servers by 2027, aiming to replace them with domestic technology. This move also targets replacing Microsoft Windows and foreign-made database software with local alternatives, as part of China's strategy to boost domestic technology amidst escalating US tensions.
March 25, 2024 | 3:27 am
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Advanced Micro Devices, Inc. is set to face challenges in the Chinese market as the country aims to eliminate its chips from government PCs and servers by 2027.
AMD, similar to Intel, will likely experience a negative impact on its business in China due to the new procurement rules. The company's significant market share in China is at risk as the country moves towards domestic technology, potentially leading to a decrease in demand for AMD's products in a crucial market.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
NEGATIVE IMPACT
Intel Corp. faces a significant setback as China plans to replace its microprocessors in government PCs and servers with domestic technology by 2027.
Intel, having a significant market share in China, will likely see a negative impact on its sales and market presence in the country due to the new Chinese guidelines. The decision reflects escalating tensions and a push for technological self-reliance by China, which could lead to decreased demand for Intel's products in one of its largest markets.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90