China Eyes Intel Chips for Security Concerns

In the ongoing tension between the US and China, a cybersecurity group in China has raised alarms about Intel's chips. The Cybersecurity Association of China (CSAC) says Intel's chips have frequent problems that threaten national security. They claim these chips can be hacked through backdoors created by the US National Security Agency. The CSAC mentioned issues with Intel's Raptor Lake processors, noting they can cause video games to crash. They also criticized Intel for being slow to fix past security breaches. They want China to review Intel's products to protect national security and consumers. While the CSAC isn't a government body, it's close to the Chinese government. This could lead to a full review by China's Cyberspace Administration. Last year, they banned Micron chips for similar reasons.

Intel's China team responded by promising to talk to authorities and ensure their products are safe. China is a big market for Intel, making up 27% of their revenue in 2023. They have orders for their Xeon processors from Chinese state agencies for AI work. A ban on Intel products in China would be bad news for Intel. They're already struggling with falling share prices and revenues. Reports say Qualcomm might buy Intel after the US election. China also has its own plans. They've made new rules to replace US processors and software in government computers with Chinese-made ones. This includes Intel and AMD CPUs and Microsoft Windows.

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