China Sets 2027 deadline for telecoms to abandon American chips in favour of local alternatives

China has accelerated its efforts to remove foreign-manufactured chips, particularly those sourced from American companies, from its telecommunications networks. For that, Chinese authorities have directed major telecom giants like China Mobile and China Telecom to phase out the use of foreign core processors by the ambitious deadline of 2027. The reliance on Intel and Advanced Micro Devices (AMD) for crucial core chips in Chinese telecom infrastructure faces a dramatic overhaul with this directive.

To reduce dependence on foreign technology, Chinese operators are now urged to adopt domestically produced chips. Under the oversight of China’s Ministry of Industry and Information Technology, state-owned mobile operators are actively inspecting their networks for foreign-made chips, aligning with broader national security goals to bolster chip security.

China’s efforts to restrict the use of foreign chips extend to government systems, with new guidelines introduced in March specifically targeting Intel and AMD chips. These measures aim to replace foreign technology, including operating systems like Microsoft’s Windows and foreign-made database software, with domestically-made alternatives in federal computer systems. Meanwhile, the US is escalating its efforts to limit Chinese access to advanced chip fabrication technology by urging key trading partners like South Korea to implement stricter export controls on semiconductor tools.