China Asks Telecom Carriers to Drop Foreign Chips, WSJ Says
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 12 2024
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Should l Buy ?
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.
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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.
