CPUs, operating systems, and centralized databases, considering their reliability and safety, will be purchased from Chinese companies
Putting aside the escalating semiconductor geopolitical tensions imposed by the US, Europe, and India, China has now undertaken an imperative strategy to phase out US firm microprocessors from AMD and Intel. According to a report by the Financial Times, the guidelines formulated by the Chinese government highlighted that the country would gradually discontinue the usage of these microprocessors on government personal servers and computers.
According to the guidelines, Microsoft's operating system and database software from other countries will no longer be in use in an effort to elevate the domestic technology business. The report also added that top government officials in the country have been urged to include “safe and reliable” processors and operating systems while buying them. In December 2023, the Chinese industry ministry issued a statement stating that CPUs, operating systems, and centralized databases considering their reliability and safety, will be purchased from Chinese companies only for three years.
When the media sent faxes for further information, China’s State Council Information Office did not respond to any queries. In fact, AMD and Intel have yet to call for a press conference regarding the same. The Biden administration's CHIPS and Science Act 2022 has been unleashed to grow the in-house semiconductor industry and decrease large-scale dependence on Taiwan, China, and other Asian countries.
The incentive scheme has been formulated keeping in mind that the US can again dominate the global semiconductor industry like in the 90s. Therefore, the Biden administration is providing fiscal assistance to domestic companies backed by subsidies to grow the production of cutting-edge chips.
