Chinese government computers are no longer allowed to run on chips from Intel and AMD. Microsoft Windows is also out of the question, as are some database solutions.

China bans Intel and AMD processors from government computers. This is a bold move since Intel and AMD (with one small exception) are the only parties building x86 processors. China wants its government to be based on homemade chips.

That’s not really surprising. The USA has been restricting the export of American technology to China for several years. Not only are the Chinese at the mercy of Washington, they also have good reason to develop their own chip industry. The government ban is now ensuring that Chinese processor manufacturers are gaining customers and thus revenue.

Sales of chips in the Chinese market account for a significant portion of Intel and AMD’s total revenue. It’s unclear how many CPU makers sell to the government and how many sell to the private sector. A noticeable effect seems inevitable.

No more Windows

China is also tightening restrictions on software. Microsoft Windows is no longer welcome, nor is foreign database software. Here, too, the aim is to give products from our own region a boost. China is responding to American restrictions and taking further steps toward an independent chip industry.

There is still a lot to do for the latter. Chip manufacturing is a high-tech job, with only a handful of manufacturers in the world having the knowledge to build the necessary equipment for a chip production line. ASML in the Netherlands is one such party. There are also important players in the USA and Japan. All have restricted Chinese exports. Chinese government laptops won’t exactly be faster tomorrow than they are today, although it remains to be seen how the Chinese chip industry will develop in the long term.