Intel Local officials have recommended a safety review of products sold in China, claiming the U.S. chipmaker poses a “serious risk” to national security.
in a statement Late Wednesday, the China Cyber Security Association outlined alleged vulnerabilities in Intel CPU chips, saying, according to Google Translate, that flaws in product quality and security management showed an “irresponsible attitude toward customers.”
CSAC further accused Intel of using remote management capabilities to spy on users, secretly installing backdoors, and failing to address defects reported by users.
Futurum Group CEO Daniel Newman noted that the security review comes amid heightened tensions between China and the United States over chip control and leadership in artificial intelligence.
“The timing is likely calculated given Intel’s recent challenges as it faces many market challenges and now must deal with pressure from China on its huge revenue and market share in the region,” Newman said.
China accounts for 27.4% of Intel 2023 revenueThat’s crucial to the company’s bottom line at a time when its stock price is struggling due to poor earnings and layoffs.
However, under U.S. chip policies, the company is restricted from exporting some of its most advanced products to Chinese customers. It is also prohibited from being shipped to certain chinese customers common.
CSAC pointed out in a statement that Intel is also one of the biggest beneficiaries of the Biden administration’s “Chip and Science Act”, saying that the bill unreasonably excludes and suppresses China’s semiconductor industry.
CSAC also challenged the company, requiring its suppliers not to use any labor or products from China’s Xinjiang region. U.S. law Imports from this area are prohibited according to Assume all goods are produced there It is the product of forced labor.
Intel has previously warned of export restrictions to China could hurt its sales.
China has reportedly instructed some of its largest telecom players to stop using foreign chips from companies such as Intel as part of a move to counter U.S. restrictions and build chip self-sufficiency.
Now, Futurum’s Newman said, Beijing is likely to follow a tactic similar to the one it used against U.S. chip giant Micron last year, a series of actions that had a multibillion-dollar impact on the semiconductor market.
Last year, companies considered part of China’s “critical information infrastructure” were banned from buying Micron products.
A survey was conducted by China Internet Information Office Summary Micron products raise “cybersecurity issues” and pose a threat to national security.
According to Google Translation, Intel posted on its official WeChat account on Thursday that it had taken note of the CSAC report and always puts product safety and quality first.
“We will maintain communication with relevant departments to clarify relevant issues and demonstrate our firm commitment to product safety and quality.”
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