China reportedly orders state-owned mobile carriers to replace foreign chips

Back in 2019, the FCC barred U.S. carriers then beginning to deploy 5G networks from using subsidies to buy equipment from companies deemed a threat to national security. Chinese manufacturers Huawei and ZTE were at the top of the list. Now China is implementing a similar measure: according to The Wall Street JournalThe Ministry of Industry and Information Technology has ordered state-owned mobile operators, including the country’s two largest operators, to phase out foreign chips.

The regulator is said to have advised China Mobile and China Telecom, along with all other state-owned carriers, to inspect their networks for non-locally manufactured semiconductors. He then asked for a timeline to replace them. The The magazine sources said that the move to native chips is now possible thanks to improvements in their quality and performance over the past few years. Chinese companies like Huawei have been forced to do so they design their own semiconductors after being hit with trade sanctions, they will no longer be able to import chips from the US and its allies to support themselves. The Chinese government, in turn, supports and supports their efforts It raised 40 billion dollars to help the local semiconductor industry.

This latest move by China follows the ban imposed on the US Use of Intel and AMD processors on government computers. China before that prohibited its use US-made technology is prohibited in all government agencies and public institutions and domestic firms from buying chips Developed by US memory manufacturer Micron Technology. Intel and AMD are likely to suffer big losses from this latest development, as they supply most of the chips used for mobile networks around the world. China was too Intel’s largest market in 2023 and accounted for 27 percent of its income. In addition to losing some of their biggest customers, the companies will now also face competition from Chinese manufacturers.

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