The Cybersecurity Association of China (CSAC) has raised concerns about the security of Intel products sold in China, alleging that the US chipmaker has posed threats to the country's national security and interests. While CSAC is an industry group with ties to the Chinese state, its accusations against Intel could prompt a security review by China's Cyberspace Administration.
Intel's China unit responded by emphasizing its commitment to product safety and quality, stating that it will address any concerns raised by authorities. The potential security review could impact Intel's revenues, as a significant portion of its sales come from China.
Last year, China's Cyberspace Administration prohibited domestic operators from purchasing products from US chipmaker Micron Technology after a security review. A similar review on Intel products could have financial implications for the company.
The allegations against Intel come amid escalating tensions between the US and China over access to chipmaking technology. CSAC claims that Intel chips have vulnerabilities and security flaws, including potential backdoors created by the US National Security Agency.
If a ban on Intel products is imposed, it could affect the supply of AI chips in the Chinese market, where alternatives to Intel and Nvidia products are limited. Intel recently secured orders for its Xeon processors for AI applications from Chinese state-linked agencies.
As the situation unfolds, industry analysts warn of potential repercussions on trade relations between the US and China. The fragile nature of the relationship could lead to retaliatory measures in response to trade restrictions and tariffs.
