China tells telcos to phase out foreign chips in blow to Intel, AMDBeijing has increased efforts to replace Western-made technology with domestic alte…

Chinese officials had earlier this year directed the nation’s largest telecom carriers to phase out foreign processors that are core to their networks by 2027, a move which would hit American chip giants Intel and Advanced Micro Devices, the Wall Street Journal reported on Friday.

Shares of Intel and AMD were down more than 1% in premarket trading.

Beijing has increased efforts to replace Western-made technology with domestic alternatives amid Sino-U.S. tensions as U.S. President Joe Biden’s administration tightens curbs on high-tech exports to its rival.

Reuters

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