Chinese Telco Companies: The Gradual Shift to Chinese CPUs

July 13, 2024 Hardware

In the world of telecommunications and technology, it's almost impossible not to be aware of the significant shift occurring in China. The country's giant telco companies are gradually transitioning to use Chinese Central Processing Units (CPUs). This strategic move is a considerable step forward in China's quest to become technologically self-reliant amid growing tensions with the US and other western countries.

The Big Switch

According to reports, China Mobile, the world's largest mobile telecom company, has been spearheading this shift. It has been actively seeking bids for servers powered by CPUs designed and manufactured in China. Other Chinese telco giants, including China Telecom and China Unicom, are also following suit. They are focusing more on locally produced CPUs for their servers—an evident departure from the previous reliance on foreign-made chips.

The Impetus

The shift towards Chinese CPUs is due to several factors. First, the on-going trade war between China and the US has restricted Chinese companies' access to American technology. This has led to a reevaluation of dependency on foreign technology and a renewed focus on self-reliance. Secondly, the Chinese government has been urging domestic companies to use locally manufactured technology in a bid to boost the country's technological prowess.

The Chinese CPU Heroes

The CPUs designed and made in China are mainly from two companies: Zhaoxin and Hygon. Zhaoxin, a joint venture between VIA Technologies and the Shanghai government, has been producing x86 CPUs for several years. Their latest CPU, the Zhaoxin KaiXian KX-7000, is said to offer performance on par with Intel's 7th Gen Core i5 Processor.

On the other hand, Hygon is a joint venture between AMD and THATIC (Tianjin Haiguang Advanced Technology Investment Co. Ltd.). It produces Zen-based CPUs exclusively for the Chinese market. Hygon's Dhyana CPUs are essentially rebranded versions of AMD’s EPYC and Ryzen processors.

The Future

While it may take a while for Chinese CPUs to compete globally with the likes of Intel and AMD, the shift by Chinese telco companies to use domestically made CPUs is a significant step. It hints at the potential of a future where China could be less reliant on foreign technology. However, they still have a long way to go to compete on a global scale.

The move by Chinese telco companies to utilize their own CPUs reflects a broader trend of nations striving for technological self-reliance. It indicates an accelerating shift in the global tech landscape, potentially leading to a new frontier in the world of technology.

In conclusion, China's gradual shift to using domestically produced CPUs in its telco industry is a significant development. It underscores the country's desire to become self-reliant in technology and reduce its dependence on foreign-made components. This shift may not only transform China's tech landscape but also have far-reaching implications for the global tech industry.

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