China is stepping up efforts to reduce its dependence on foreign technology, aiming to remove U.S. chipmakers from its communications infrastructure by 2027, according to the Wall Street Journal.
Earlier this year, the country's Ministry of Industry and Information Technology (MIIT) directed major carriers to phase out foreign processors essential to their networks by a specified deadline.
The move is expected to have an impact on the American semiconductor giant. Intel Corporation (NASDAQ:) and Advanced Micro Devices (NASDAQ:).
Shares of the two companies fell 1.3% and 2%, respectively, in early New York trading on Friday.
State-owned mobile phone operators have been told to assess whether their networks are equipped with non-Chinese semiconductors and develop plans to replace them, the report added.
Previous efforts by the Chinese government to reduce dependence on foreign semiconductors have been hampered by a lack of domestically produced chips of comparable quality. However, recent improvements in the quality and stability of local chips have allowed carriers to switch to domestic alternatives.
U.S. lawmakers have imposed restrictions on Chinese telecommunications equipment and high-end AI chips from U.S. semiconductor companies, citing national security concerns.
Chinese authorities have long sought to strengthen domestic supply chains and reduce dependence on overseas suppliers. Similar directives have been issued in other sectors, and U.S. software and hardware companies are already slowly losing market share in China.
