With Trump’s additional 10% tariff on all Chinese goods taking effect on February 4, China appears to have chosen its next move: targeting U.S. tech giants with investigations. After announcing an antitrust probe into Google, reports from Wccftech and Oregon Live, citing Financial Times, suggest that China may also be considering an investigation into Intel, following last year’s probe into NVIDIA.
However, no official investigation into Intel has been announced yet, and the decision may depend on how the trade war evolves, as per the reports.
Notably, China is Intel’s biggest market, making up about $15 billion in sales in 2024, or 29% of its total revenue, according to the Oregon Live report.
After selling its NAND factory in Dalian to South Korean memory giant SK hynix, Team Blue still runs an assembly and testing facility in Chengdu, Southwestern China. In October, 2024, Intel announced an expansion there. In addition to packaging and testing for client products, the facility will now offer services for server chips and will establish a Customer Solutions Center aimed at boosting local supply chain efficiency, according to a company announcement.
However, as U.S.-China relations have worsened, Intel has faced more challenges operating in China. In 2023, Chinese regulators blocked Intel’s attempt to buy local contract manufacturer Tower Semiconductor. In October, 2024, the Cybersecurity Association of China called for a security review of Intel products, claiming they pose “serious risks” to national security, noting that there are alleged flaws in Intel’s CPU chips, as highlighted by a CNBC report.
As per the freshly announced investigation into Google, the Financial Times report indicates that it will revolve around the Android operating system and its anticompetitive effects on Chinese firms such as Xiaomi and Oppo which use Android to power up their gadgets.
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(Photo credit: Intel)