Intel loses 50% of China server sales due to recent sanctions

The US sanctions against Huawei have led Google and many other companies to stop working with it. Today, a list of 19 companies allegedly controlled by the Chinese military was published. It's worth noting that one company on the list is described as unconfirmed. Well, Intel has been hit first, and at a particularly bad time.

Inspur Group is one of the largest technology companies in China that is dedicated to cloud computing, servers, AI and more. The problem is that this company is a major Intel customer, buying a large number of processors from it. Being on the Pentagon blacklist, Intel will no longer be able to supply processors.

China's veto hits Intel hard

It seems that if Intel runs a circus, the dwarfs grow, the bearded woman ends up with alopecia, and the lions go vegan. If the stick of losing Apple is important, losing Inspur as a customer is the last straw.

It should be noted that Inspur represents 50.8% of the AI ​​systems market in China. According to IDC, the company would have 25.9% of server sales worldwide. The second place in China is occupied by Huawei with 18.4% of the market share. This means that Intel loses 70% of China's AI and server systems buyers.

Intel has temporarily paused shipments to this customer to make some changes to our supply chain as required by United States law.

Intel official statement

The statement suggests that nothing else can resume supply to Inspur. The reality is that they may not be able to resume operations for a long time. The US restriction applies to critical Intellectual Property that they do not want in the hands of the Chinese military.

It should be noted that, with this stupid trade war of the United States, the one who loses the most is the United States. At the moment they have not yet presented evidence of Huawei's espionage through 5G networks. We may have to ask Miguel Bosé about this, who knows about 5G, nanobots and Bill Gates for a while.

Source: MD