Intel chips sold in China will now be required to undergo security testing to evaluate potential threats to national security. This directive originates from the China Cyber Security Association (CSAC), which has expressed concerns that Intel “continuously causes damage” to the country’s security and interests.
While the CSAC is an industry organization rather than a government body, it is believed to have strong connections with the Chinese government. The extensive allegations against Intel, published on CSAC’s official WeChat account, could potentially lead to increased scrutiny from the Cyberspace Administration of China (CAC).
As of now, Intel and CAC representatives have not commented on the matter. The CSAC has recommended a cybersecurity review of Intel products in China to safeguard national security and protect consumer rights.
The CSAC has also raised alarms about vulnerabilities in Intel chips, including the Xeon series used for artificial intelligence (AI) applications. The organization labels this as a significant quality control and safety issue, criticizing Intel’s approach toward customer safety. Their statement asserted that using Intel products could pose considerable risks to global critical information infrastructure, including that of China.
If Intel products are prohibited, it may lead to a diminished supply of chips for the AI sector in China. Chinese firms are actively seeking alternatives to Nvidia products, which are currently restricted from supplying the country due to U.S. government policies.
Previously, the CSAC banned domestic critical infrastructure operators from procuring products from U.S. manufacturer Micron after those products failed cybersecurity evaluations. If Intel products are subjected to similar inspections, it could negatively impact the company’s revenue, particularly since over a quarter of Intel’s revenue at the end of last year was derived from the Chinese market.
