Intel expects a big blow to its business as chip shipments to China’s server market is at risk

Intel has been forced to briefly suspend shipments of server chipsets to China’s Inspur, world’s third-largest server manufacturer.

The company was forced to do this due to the company being added to the list of banned destinations under the US  Defense Authorization Act of 1999, one of 20 companies the Pentagon said was owned by, controlled by, or affiliated with China’s military.

Huawei is, of course, the most famous name on the list, but ultimately many more companies are affected on either side of the world.

In a statement Intel said:

“We have temporarily paused shipments to one customer in order to ensure compliance with U.S. Government export regulations. This is a temporary pause expected to last less than two weeks for some items, and others will resume in a matter of days. We will resume shipments as soon as we can do so while ensuring compliance with U.S. law.”

Intel appears to have found a way around the restrictions already, with the Chinese media reporting that Intel has already resumed shipments to Inspur, saying they’ve had to adjust their supply chain to ensure compliance with US laws.

Ironically Huawei’s server business is not affected by the restrictions, as the company uses its own ARM-based chips in its servers. If the restrictions tighten however it can only be bad news for Intel, who is already under threat as PCs and Laptops start the shift to ARM, with more server companies being forced to make the same transition.

via Techspot

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