Intel is facing a security review in China, as local officials allege the U.S. chipmaker poses “serious risks” to national security. The Cybersecurity Association of China (CSAC) released a statement accusing Intel of significant vulnerabilities in its CPU chips, asserting product quality and security management flaws reflect an “irresponsible attitude” towards customers. CSAC further alleges Intel uses remote management features for user surveillance, installs backdoors covertly, and neglects defect reports. This review occurs amid increasing U.S.-China tensions over chip controls and AI dominance.
Daniel Newman, CEO of The Futurum Group, highlighted the strategic timing, noting China’s scrutiny could pressure Intel’s substantial regional revenue and market share. In 2023, China accounted for 27.4% of Intel’s revenue, crucial for a company navigating poor earnings and job cuts. U.S. policy restrictions have limited Intel’s ability to export advanced products to China and to certain clients entirely.
CSAC criticized Intel’s exclusion of products from China’s Xinjiang region due to U.S. laws against forced labor. The association also accused Intel of benefiting excessively from the Biden administration’s Chips and Science Act while suppressing China’s semiconductor sector. In response to U.S. restrictions, China reportedly advised its telecom carriers to stop using foreign chips, including Intel’s.
Newman hinted that China’s tactic might mirror actions taken against Micron, another U.S. firm previously hit with import bans over “network security issues.” In reaction, Intel stated on WeChat that it noted the CSAC report and prioritizes product safety and quality, committing to dialogue with authorities to resolve concerns.
Original Story https://www.cnbc.com/2024/10/17/intel-faces-headwinds-in-china-as-trade-body-calls-for-security-probe.html
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