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Key Takeaways
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According to the Cybersecurity Association of China, Intel products pose a national security risk to that country.
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The Chinese agency has called on the country’s internet regulator to conduct an investigation into Intel products.
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Last year, Chinese regulators banned the sale of Micron products to domestic operators.
Intel (INTC) shares fell on Wednesday after a Chinese industry group said the chips Intel sells in China should be assessed for national security risks.
This is evident from a report from Wednesday ReutersAccording to the Cybersecurity Association of China (CSAC), Intel has “continually harmed” the country’s interests and security. Although the body itself is not a government agency, the news agency called for a review of Intel products by the Cyberspace Administration of China (CAC), the country’s cyberspace and internet regulator.
“It is recommended that a network security assessment for the products be initiated Intel sells in China, to protect effectively China‘s national security and the legitimate rights and interests of Chinese consumers,” CSAC said on Wednesday Reuters.
Not the first action in China against the American chip manufacturer
Intel did not immediately respond to a request for comment from Investopedia.
There is precedent for China taking action against the Americans semiconductor companies. In 2023, the CAC banned the sale of Micron Technology (MU) products to companies in China, citing a similar national security investigation.
Intel shares fell about 4% early Wednesday, but then recovered some ground to trade about 1% lower, at $22.42, as of 1:15 p.m. ET. They have lost more than half their value this year.
Read the original article Investopedia.
