The Cybersecurity Association of China (CSAC), an industry group with close government ties, has urged for a security review of Intel products sold in China. On Wednesday, CSAC accused the US chipmaker of jeopardizing China’s national security through its products, as stated in a detailed post on its official WeChat account. This call for scrutiny could lead the Cyberspace Administration of China (CAC), the country’s top cybersecurity watchdog, to initiate a formal security assessment.
Intel’s response came swiftly, with its China division emphasizing its commitment to product safety and quality, and expressing readiness to cooperate with relevant authorities to address any concerns. This statement was also released on WeChat on Thursday.
The backdrop of these allegations is a larger geopolitical conflict, marked by the U.S. efforts to limit China’s access to essential semiconductor technology—a move the U.S. justifies as necessary to prevent the modernization of the Chinese military. This tension has heightened fears of reciprocal restrictions, potentially affecting trade relations further, as noted by Dan Coatsworth, an investment analyst.
CSAC’s allegations are particularly pointed, highlighting supposed vulnerabilities in Intel’s Xeon processors, which are widely used in artificial intelligence applications. The industry group claimed these chips have backdoors that could be exploited by the U.S. National Security Agency (NSA), posing a severe risk to global and Chinese national security.
This development comes on the heels of last year’s decision by the CAC to prohibit key domestic operators from purchasing products from U.S. chipmaker Micron Technology, following a failed security review. A similar outcome for Intel could significantly affect its business, as China represents over a quarter of its total revenues.
The potential implications of a ban on Intel products include exacerbating the already tight supply of AI chips in China, particularly as alternatives to high-end chips from companies like Nvidia, which currently faces export bans to China, are limited. This situation underscores the intricate link between global semiconductor supply chains and international political dynamics.
