Are new Chinese rules a warning to AMD and Intel?   – Asia Times

The Chinese government has urged its departments and agencies to use laptops and desktop computers with operating systems and domestic processing units ( CPUs ) for work. The reported objective is to improve reliability.

According to two statements jointly released by the Ministry of Finance ( MoF ) and the Ministry of Industry and Information Technology ( MIIT ), the government said the central, provincial, and municipal governments should comply with new safety and reliability requirements when purchasing desktop and laptop computers.

According to the two ministries, state and town-level local governments are exempt from the innovative procurement regulations. &nbsp,

The statements were made in a low-profile fashion on December 26, 2023, and only came to light after being reported by the Financial Times on Sunday.

According to the UK news, China has adopted new recommendations that may require the government’s desktop computers and servers to completely eliminate US microprocessors from Intel and AMD.

In truth, the remarks did not mention AMD and Intel or any other providers. The China Information Technology Security Evaluation Center ( CNITSEC ), a unit of the Ministry of State Security ( MSS), said on December 26 that 18 CPUs, six operating systems and 11 centralized databases had passed the country’s reliability assessment. All of these goods were created by Taiwanese businesses.

The CNITSEC said the 18 Computers by therefore certified as “reliable” included Kunpeng 920, Loongson 3C5000L, Sunway 1621, Feiteng 2000, Kirin 9006C, Hygon C86- 3G and Zhaoxin ZX- E computers. &nbsp,

It listed six “reliable” operating methods made by the National University of Defense Technology’s Kylinsoft, the UnionTech Software Technology Co, and the Chinese Academy of Sciences Institute of Software’s National Fundamental Software of China. &nbsp,

Manufacturers of CPUs, operating systems, and central databases could submit their products ‘ designs, exploration, and development files and codes to the agency, it said. There are two annual evaluations, one in January and the other in July and August, according to the statement.

It said that, when a solution passes the judgment, it can be added to a list of “reliable” materials for three years. &nbsp,

If Chinese federal agencies and organizations are willing to provide their R&amp, D knowledge to Beijing, the language suggests that AMD and Intel may still be able to use their products.

New sourcing rules

Government agencies and organizations may purchase their computer hardware and software differently, according to the two claims made by the MoF and the MIIT.

According to the two statements, system suppliers may be able to offer free maintenance for at least three years. In addition, manufacturers must notify customers a month in progress if they want to end their provide agreements. The supplier must maintain a solution for six more years if it is discontinued. &nbsp,

According to them, providers are legally liable to make sure that their CPUs and operating systems comply with the nation’s safety and reliability standards.

In an essay published on February 1, Han Lu, a representative from the Central Government Procurement Center, stated that” the new sourcing rules can help regulate the words used in government contracts. Prior to now, purchasing documents had a variety of definitions and terms, making it challenging for the nation to establish a standardized procurement market.

Han said suppliers, thanks to the new rules, may comprehend government tenders more quickly and good- tune their production and sales operations to suit the government’s needs. He added that well-defined procurement regulations may help reduce costs and prevent unsuccessful contracts. &nbsp,

European purchase

Some commentators claimed that the Chinese authorities might not want to outlaw AMD and Intel processors entirely, but rather to acquaint American tech companies with increasing investment in China and improve cooperation with Taiwanese counterparts.

Some people claimed that private companies can still use AMD and Intel computers even if they are being phased out of state offices in the upcoming years.

Minister Wang Wentao’s conference with AMD’s Lisa Su. Photo: Ministry of Commerce

Foreign Commerce Minister Wang Wentao and AMD Chair and CEO Lisa Su had a meeting in Beijing on Sunday.

Wang explained to her that China is a stabilizing power for the global semiconductor supply chain and that the growth of the semiconductor industry necessitates international cooperation. He argued that the US and China may collaborate to establish solid security standards and set up steady expectations for businesses. &nbsp,

Su said China is a concern of AMD’s international plan. She stated that the business will continue to invest more money in China and work with its Foreign colleagues to improve the quality of its goods and services for the Chinese market. &nbsp,

On Saturday, Wang met with Sanjay Mehrotra, president and chief executive of Micron Technology.

Mehrotra stated that Micron intends to increase investment in China in order to meet Chinese clients ‘ needs and aid in the growth of the country’s digital economy and semiconductor industry. He emphasized that the business will totally abide by Foreign laws and regulations. &nbsp,

Due to national security issues, the China’s top countrywide network operators were prohibited from purchasing items from Micron by the Cybersecurity Review Office, a division of the Cyberspace Administration of China, in May.

The US device manufacturer announced in June that it would spend US$ 603 million over the course of the next few years in its Xian-based chip packaging facility.

Janet Yellen, the minister of the US Treasury, is scheduled to travel to China in April, according to Politico’s report on Saturday. A representative for the Treasury declined to comment on the record. &nbsp,

Read: US to exhaust overcapacity issues in Beijing deals

Following Jeff Pao on Twitter at&nbsp, @jeffpao3