The Cybersecurity Association of China (CSAC) is calling for a security review of Intel products sold in China, citing concerns about threats to national security and interests. While CSAC is not a government agency, it has close ties to the Chinese state and its accusations against Intel could prompt a review from the Cyberspace Administration of China (CAC). Intel and CAC have not responded to requests for comment on the matter, and Intel’s shares fell amid a broader tech sell-off following negative news from chip equipment maker ASML.
CSAC is recommending a network security review of Intel products in China to protect national security and the rights of Chinese consumers. This call comes after CAC banned domestic operators from purchasing products from US memory chipmaker Micron Technology Inc last year due to failed security reviews. A similar review of Intel products could potentially impact the company’s revenues, as a significant portion of their sales come from China. These allegations against Intel come at a time when China is facing restrictions on its access to crucial chipmaking equipment and components, as part of a US-led effort to limit China’s military modernization.
The allegations made by CSAC against Intel include claims of vulnerabilities in Intel chips, specifically Xeon processors used for artificial intelligence tasks. They assert that Intel products have major defects in quality and security management, displaying an irresponsible attitude towards customers. CSAC also accuses Intel processors of being vulnerable to backdoors created by the US National Security Agency, posing a security threat to various countries, including China. A ban on Intel products, even if temporary, could further restrict the supply of AI chips in the Chinese market, which is already facing challenges in finding alternatives to Nvidia products that are now banned from export to China.
Intel had recently secured orders for its Xeon processors from several Chinese state-linked agencies for AI work. The potential security review of Intel products in China could have significant implications for the company’s operations in the country. Intel has not yet responded to the allegations made by CSAC. The fragile relationship between the US and China, particularly in the context of trade restrictions and tariffs, could lead to retaliatory actions that may further intensify the situation. As tensions between the two countries continue to rise, the implications of these security concerns on Intel’s business operations in China remain uncertain.
