There are reports that China is phasing out foreign chips

According to the Wall Street Journal, China is stepping up efforts to lessen its reliance on foreign technology and plans to cut out American chip manufacturers from its telecom infrastructure by 2027.

Major telecom carriers were instructed by the nation's Ministry of Industry and Information Technology (MIIT) earlier this year to phase out foreign processors that are essential to their networks by the deadline.

The American chip titans Advanced Micro Devices and Intel are anticipated to be impacted by this action.

The article also stated that state-owned mobile operators have been directed to search their networks for non-Chinese chips and create replacement plans for them.

Prior attempts by the Chinese government to lessen its dependency on foreign semiconductors were hampered by the dearth of similarly high-quality indigenous semiconductors. However, telecom carriers now have the option to move to domestic alternatives due to recent advancements in the reliability and quality of local chips.

Citing national security concerns, U.S. senators have placed limits on Chinese telecom equipment and high-end AI processors from American semiconductor firms.

For a long time, Chinese officials have worked to strengthen local supply chains and lessen dependency on outside vendors. US software and hardware companies have already experienced a slow decline in market share in China as a result of similar regulations in other industries.

(Sources: investing.com, wsj.com)