Intel, a US chipmaker, may be subject to a security review in China, as suggested by the Cybersecurity Association of China (CSAC), reports Reuters.
The association has raised concerns that Intel’s products could potentially harm China’s national security and interests.
CSAC, which has close affiliations with the Chinese government, expressed its allegations through an official WeChat post.
This move could prompt the Cyberspace Administration of China (CAC), the nation’s top internet regulator, to initiate a formal security review.
Neither Intel nor the CAC has commented on the news.
CSAC said: “It is recommended that a network security review is initiated on the products Intel sells in China, so as to effectively safeguard China’s national security and the legitimate rights and interests of Chinese consumers.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe situation echoes a previous incident where the CAC prohibited domestic key infrastructure operators from purchasing products from US memory chipmaker Micron Technology, following a failed network security review.
If Intel were to undergo a similar review and face restrictions, it could significantly affect the company’s revenue, as China accounted for more than one-quarter of its sales last year.
This development arises amidst a broader context where the US is leading efforts to restrict China’s access to essential chipmaking equipment and components.
The US government justifies these restrictions as a means to prevent the advancement of China’s military capabilities.
According to CSAC, Intel’s chips, including the Xeon processors used for artificial intelligence (AI) tasks, contain multiple vulnerabilities.
The association’s post highlighted that Intel “has major defects when it comes to product quality, security management, indicating that it is extremely irresponsible attitude towards customers.”
Furthermore, CSAC alleges that all Intel processors’ operating systems are susceptible to backdoors linked to the US National Security Agency (NSA).
Should a ban on Intel products be implemented, even temporarily, it could exacerbate the already challenging situation for China’s AI chip supply.
The market is struggling to identify suitable alternatives to NVIDIA’s advanced products, which, although globally dominant, are now subject to export bans to China.