China Asks Telecom Carriers to Drop Foreign Chips, WSJ Says
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 12 2024
0mins
Source: Bloomberg
- Beijing's Directive on Telecom Carriers: Beijing has ordered telecom carriers in China to replace foreign chips in their core networks by 2027, potentially impacting US chipmakers.
- Impact on US Chipmakers: The directive has caused shares of US chipmakers like Qualcomm and Intel to fall about 2% in pre-market trading.
- State-Owned Mobile Operators' Compliance: China's three biggest state-owned mobile operators have been instructed to inspect their networks and develop timelines to replace non-Chinese processors.
- Accelerated Campaign for Self-Sufficiency: Beijing is intensifying efforts to achieve technological self-sufficiency, urging institutions to drop iPhones, abandon foreign computers, and use locally designed silicon.
- National Security Concerns and Tech Supply Chain: The move aligns with Western governments' actions to restrict Huawei networking gear due to national security concerns, as China's state carriers heavily rely on American chip suppliers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
