In a move that could have significant implications for the global technology industry, China is reportedly considering an antitrust probe into Intel, the world's largest semiconductor manufacturer. This development comes on the heels of the US announcing new tariffs on Chinese goods, and China's subsequent retaliation with its own set of tariffs on US products.
According to a report by the Financial Times, China's regulators are weighing an investigation into Intel's business practices in the country. This would be in addition to the tariffs imposed on US goods, and marks a significant escalation in the trade tensions between the two nations. Intel, which generated 29% of its global revenue in China last year, could face significant repercussions if the probe is launched.
The potential probe is not an isolated incident. China has a history of using antitrust regulations to exert pressure on foreign companies. In December, China reopened a long-dormant antitrust probe into Google, just ahead of President Trump's inauguration. Shortly after the US tariffs came into effect, China accused Google of violating its anti-monopoly law. This move is seen by many as a clear example of China's willingness to use regulatory tools to retaliate against US companies.
Intel, which has testing and assembly facilities in China, has not commented on the potential probe. The company's significant presence in China makes it vulnerable to regulatory action, and any adverse findings could have a major impact on its revenue. In 2020, Intel generated $15.5 billion in revenue from China, making it the company's largest market.
The potential probe into Intel also raises questions about the broader implications for the global technology industry. As trade tensions between the US and China continue to escalate, companies like Intel may find themselves caught in the crossfire. The move could also have significant implications for the global semiconductor supply chain, which is heavily reliant on Chinese manufacturing.
As the situation continues to unfold, one thing is clear: the trade tensions between the US and China are having far-reaching consequences for the technology industry. With Intel potentially in the crosshairs, the company's fate may serve as a bellwether for the industry as a whole. TechCrunch has reached out to Intel for comment and will update this story if we receive a response.
In the meantime, the technology industry will be watching closely to see how this situation develops. One thing is certain: the ongoing trade tensions between the US and China will continue to have significant implications for companies like Intel, and the global technology industry as a whole.