A Chinese cybersecurity association yesterday recommended a review of products that semiconductor giant Intel Corp sells in the country, accusing it of threatening national interests.
For decades, California-based Intel has dominated the market for the chips that run everything from laptops to data centers, with China among the company’s biggest markets.
The statement by the Cybersecurity Association of China (CSAC) — an industry group with close links to the Chinese government — said some processing units made by Intel were deemed to have “frequent” security flaws.
Photo: Reuters
This has exposed users to potential attacks that could see sensitive personal data, including passwords and bank card numbers, stolen, the statement said.
“Intel has made a lot of money in China, but the company has continuously done things that harm China’s interests and threaten China’s national security,” CSAC said in the statement.
“It is recommended to initiate a cybersecurity review of Intel’s products sold in China to effectively safeguard China’s national security and the lawful rights and interests of Chinese consumers,” it added.
The statement also said Intel was working to “suppress China” by requiring its suppliers to avoid using labor or products from the Xinjiang region, where Beijing is accused of widespread rights violations.
The US Uyghur Forced Labor Prevention Act bans the import of all goods from the Xinjiang region unless companies offer verifiable proof that production did not involve such a violation.
Beijing and Washington have been locked in a tit-for-tat tech battle, vying for supremacy in fields including advanced semiconductors and artificial intelligence.
Last year, Beijing launched an investigation into US memory chipmaker Micron Technology Inc, citing the need to “safeguard national security.”
Separately, Qualcomm Inc is likely to wait until after the US presidential election next month before deciding whether to pursue an offer to buy Intel, people familiar with the matter said.
San Diego-based Qualcomm wants greater clarity on the new occupant of the White House before deciding its next move because of the impact any future administration would have on the antitrust landscape and America’s relationship with China, according to the people, who asked not to be identified discussing confidential information.
Qualcomm could opt to wait until after the inauguration of the new US president in January before deciding how to proceed, given the many complexities of a potential transaction involving Intel, some of the people said.
A combination of Qualcomm and Intel, whose products are key to the digital framework supporting everyday life — from smartphones to electric vehicles — would almost certainly draw intense scrutiny from antitrust regulators in the US and around the world. That includes China, a key market for both Qualcomm and Intel.
Qualcomm made a preliminary approach to Intel on a possible takeover of its struggling rival in September last year. In the same month, the company made informal inquiries with antitrust regulators in China to gauge their stance on any potential deal, some of the people said. Qualcomm hasn’t received any feedback from Chinese authorities, which are waiting to see if the company actually makes a formal bid, they said.
Additional reporting by Bloomberg
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