China this week began the final phase to stop the use of computers and servers equipped with AMD and Intel CPUs in the country. The measure was published at the end of 2023, being implemented gradually and now government agencies can no longer buy equipment with these chips. Only public institutions at the municipal level will be able to continue buying and using PCs equipped with these processors.
In addition to prohibiting the purchase — and future use — of hardware from AMD and Intel, the Chinese government’s move also aims to reduce reliance on the Windows operating system and other Western programs. With these restrictions on foreign products and services, China will focus on solutions made in its own country. This ban is expected to accelerate the technological evolution of Chinese chips.
AMD and Intel now join Apple, which has had the use of its products banned by government agencies. The Chinese government’s decision prevents iPhones from being used for professional activities. Therefore, a politician or civil servant can have the device for personal use, but will not be able to use the smartphone at work.
The Chinese government also wants to stop using Windows on government PCs. As a result, China is expanding the use of Linux on its computers and servers. The country is using it by creating its own Linux distributions to use on its machines.
While all public agencies do not finalize purchases of Made in China products (in the purest sense of the word), some employees will continue to use PCs with prohibited hardware. The problem for professionals is learning how to use a new operating system and new database programs.
Lin Qingyuan, an analyst at the German firm Bernstein, said in an interview with the Financial Times that the replacement of such equipment will be faster in servers. The goal is for all computers to be replaced with home hardware and software by 2027.
There are 18 companies authorized to sell CPUs in China. These companies use different architectures in their chips, such as x86, Arm, and others developed in the country. Intel is expected to be the most affected company, as last year sales in the country accounted for 27% of the company’s total in 2023 — against 15% of AMD’s total sales.
