Jul 01, 2020 07:27 PM

Intel Halts Chip Supply to Leading Chinese Server-Maker

What’s new: U.S. chip giant Intel confirmed to Caixin that it has stopped supplying its products to Inspur, China’s largest maker of computer servers.

An Intel representative described the move as temporary and estimated the suspension would last for about two weeks. Intel took the step to allow the company time to make adjustments to comply with relevant U.S. laws, the person said.

Why is this happening: On June 25, Inspur was named by the U.S. Defense Department as one of 20 Chinese firms that were owned or controlled by the Chinese military. Others on the list included telecom equipment maker Huawei, and surveillance equipment maker Hikvision.

Potential impacts for companies included on the list were not immediately clear at its time of publication.

But the administration of U.S. President Donald Trump has aggressively blacklisted companies, including Huawei and Hikvision, to prevent them from getting American-made technology that many of their products rely on. Blacklisted companies cannot buy from their U.S. suppliers unless those suppliers get special licenses from Washington.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.

Related: FCC Calls Huawei, ZTE Security Threats as It Bars Subsidies

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