Chinese officials directed the country's largest telecom carriers earlier this year to phase out foreign chips that are key to their networks by 2027, the Wall Street Journal reported on Friday, citing people familiar with the development.
The move would impact U.S. chip giants Intel (INTC.O), opens new tab and Advanced Micro Devices (AMD.O), opens new tab, according to the report. Their shares were down more than 1.5% in premarket trading.
Beijing has ramped up efforts to replace Western-made technology with domestic alternatives amid Sino-U.S. trade tensions, as Washington tightens curbs on high-tech exports to its rival, Reuters reported late last year.
China was Intel's largest market last year and was responsible for more than 27% of Intel's total revenue.
