Intel and AMD could lose billions if China goes through with US processor ban

According to a recent report by the Financial Times (FT), China's Ministry of Industry and Information Technology (MIIT) quietly released new PC and server procurement regulations on December 26, 2023, requiring government agencies to procure "secure and reliable" processors and operating systems. On the same day, the China Information Technology Security Evaluation Center published a list of "secure and reliable" processors and operating systems, and it consisted solely of Chinese suppliers.

This can be seen as the largest action taken by China to date to establish a domestic technology alternative supply chain and increase the usage rate of domestic technology products.

Analysts believe it will be difficult for Intel and AMD to enter this list of processor suppliers because it would require them to submit complete product R&D documents and code. On top of that, the primary evaluation criteria include how much design, development, and manufacturing are done within China.

Intel and AMD's total revenue for the fiscal year 2023 reached US$54.2 billion and US$22.7 billion, with 27% and 15% respectively contributed by the Chinese market. As for Microsoft, although it did not disclose relevant data in its financial reports, company president Brad Smith revealed to the US Congress in 2023 that China contributed 1.5% of its revenue. $Advanced Micro Devices (AMD.US)$ $Intel (INTC.US)$ $NVIDIA (NVDA.US)$