China Recommends Security Review of Intel Products over National Security Concerns
TEHRAN (Tasnim) – Chinese officials have recommended a security review of Intel products, alleging that the US chipmaker poses significant risks to national security, highlighting flaws in product quality and security management.
The Cybersecurity Association of China (CSAC) issued a statement on Wednesday evening, alleging vulnerabilities in Intel's CPU chips.
According to a Google translation of the statement, CSAC accused Intel of showing an "irresponsible attitude toward its customers" by failing to address reported flaws in its products.
The organization also alleged that Intel uses remote management features to surveil users and covertly installs backdoors, adding to the security risks.
Daniel Newman, CEO of The Futurum Group, commented on the timing of the review, noting that it coincides with rising tensions between China and the US over chip controls and leadership in artificial intelligence.
"Given Intel’s recent challenges, the timing is likely well-orchestrated as Intel is facing numerous market hurdles and now has to manage pressure from China on its significant revenue and market share in the region," Newman said.
China made up 27.4% of Intel's revenue in 2023, a critical segment for the company as it grapples with poor earnings and job cuts.
However, US chip policy has limited Intel’s ability to export some of its advanced products to China, and certain Chinese clients are entirely barred from receiving shipments.
In its statement, CSAC also highlighted Intel’s involvement in the Biden administration's Chips and Science Act, accusing the company of benefiting from the legislation while excluding and suppressing China’s semiconductor industry.
Intel has previously cautioned that US export restrictions on China could negatively impact its sales.
As part of China’s efforts to counter US restrictions and enhance chip self-sufficiency, Beijing has reportedly instructed major telecommunications firms to stop using foreign chips, including those from Intel.
According to Newman, China may be employing a strategy similar to the one used against US chipmaker Micron in 2023, which led to a multibillion-dollar impact on the semiconductor industry.
Last year, companies considered part of China’s "critical information infrastructure" were banned from purchasing Micron products.
The Cyberspace Administration of China had concluded that Micron's products posed "network security issues" and threats to national security.
In response to the latest developments, Intel posted on its official WeChat account on Thursday, stating it had taken note of the CSAC report.
"Intel has always prioritized product safety and quality, and we will continue communicating with relevant authorities to clarify concerns and reaffirm our commitment to these standards," the company said.
