Chinese Cyber Association Urges Security Review of Intel Products in China
The Chinese Cyber Association calls for a security review of Intel products in China. Intel has been accused of poor product quality and security management. Potential security reviews could have a significant impact on Intel's revenues.
While CSAC is an industry group with close ties to the Chinese government, its recent accusations against Intel may result in a security review by China's Cyberspace Administration.
Intel and the Cyberspace Administration of China (CAC) have yet to respond to the request for comment. Following the allegations, Intel's shares fell 2.7% in premarket trading in the United States, part of a broader tech sell-off sparked by a disappointing update from chip equipment maker ASML.
To protect national security and Chinese consumers' rights, the CSAC recommended that Intel products undergo a network security review in China. After failing a network security review, CAC prohibited domestic operators from purchasing products from Micron Technology Inc, a US memory chipmaker, last year.
A potential security review of Intel products could have a significant impact on the company's revenues, as China accounted for more than a quarter of total revenue last year. These allegations come amid tensions between the US and China over restrictions on chipmaking equipment, with Washington attempting to stymie China's military modernisation efforts.
According to the CSAC, Intel chips, including Xeon processors used for artificial intelligence tasks, contain vulnerabilities that could pose security risks to critical information infrastructures around the world, including in China. The industry group accuses Intel of major flaws in product quality and security management, implying an irresponsible approach to customers.
Even a temporary ban on Intel products could put additional strain on the Chinese market's supply of AI chips. This could be difficult as China seeks alternatives to Nvidia's cutting-edge products, which are currently prohibited from export to China. Despite this, Intel has recently received orders for Xeon processors from several Chinese state-linked agencies for AI-related projects.
Chinese Cyber Association calls for security review of Intel products in China
Intel faces allegations of product quality and security management issues
Potential security review could impact Intel's revenues significantly
Source: REUTERS