Advanced Micro Devices (NASDAQ: AMD) stock dropped over 4% in intraday trading Friday following a report indicating that China has instructed its telecommunications firms to discontinue using chips manufactured outside the country, including those produced by American companies.
The Ministry of Industry and Information Technology, earlier this year, issued an order instructing China’s leading telecoms to phase out foreign processors integral to their networks by 2027, as reported by The Wall Street Journal.
The directive aims to expedite the country’s effort to reduce reliance on foreign-made chips, and the Ministry instructed state-owned mobile operators to conduct inspections of their networks to identify non-Chinese semiconductors and develop timelines for their replacement, according to the report.
Sources familiar with the matter indicated to the Journal that the decision would have a significant impact on Intel and AMD, as these two U.S. firms have been major suppliers of core processors used in China and globally in recent years.
AMD, in the news last week, announced a collaboration with BlackBerry to develop a platform aimed at enhancing the performance, reliability, and scalability of robotic systems.
Advanced Micro Devices (NASDAQ: AMD) Stock Movement
AMD stock fell 4.23% to close at $163.28 on Friday. The traders had exchanged hands with 63,220,378 (63.22 million) shares compared to the average daily trading volume of 77.06 million.
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