Intel Faces Scrutiny as China Calls for Security Review

The Cybersecurity Association of China (CSAC) has recommended a security review of Intel products sold in China, citing threats to national security. While CSAC is not a government body, it holds close ties with the Chinese state. This development might prompt a review from China’s Cyberspace Administration.

Intel’s stock dropped 2.7% amidst a tech sell-off after the allegations were published on CSAC’s WeChat account. A network security review on Intel could impact its revenue, as over a quarter of its sales last year originated from China, echoing a previous case involving Micron Technology’s products.

The timing is crucial, given U.S. efforts to limit China’s access to advanced chipmaking tools. CSAC accused Intel’s chips, including Xeon processors, of security vulnerabilities and connection to the NSA backdoors, posing global security risks. This could tighten AI chip supply in China, as viable alternatives are scarce.

(With inputs from agencies.)