AMD and Intel Shares Decline Amid Reports of Chinese Directive to Replace Non-Chinese Processors
Shares of Advanced Micro Devices (AMD) and Intel (INTC) dipped on Friday following reports from The Wall Street Journal indicating that China has directed the country’s largest telecommunications carriers to discontinue the use of foreign chips.
According to sources familiar with the matter cited by the Journal, Chinese officials issued the directive earlier this year, requiring telecom systems to replace non-Chinese core processors by 2027. The report suggests that this mandate will impact both AMD and Intel, causing their stocks to decline by as much as 4% on Friday afternoon.
While Intel declined to comment on the report, AMD has yet to respond to requests for comment.
China’s move to restrict the use of foreign chips underscores the ongoing tensions surrounding global chip supply chains and the country’s efforts to reduce dependence on foreign technology. With China being a significant market for both AMD and Intel, accounting for 15% and 27% of their respective revenues in 2023, the impact of such directives reverberates throughout the semiconductor industry.
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