Intel faces headwinds in China as trade body calls for security probe

Core Viewpoint - Intel faces a security review in China due to allegations of posing "serious risks" to national security, which could impact its significant revenue and market share in the region [1][2] Group 1: Security Allegations - Local officials in China have recommended a security review of Intel products, citing alleged vulnerabilities in Intel's CPU chips [1] - The Cybersecurity Association of China accused Intel of having an "irresponsible attitude" towards product quality and security management [1] - Allegations include the use of remote management features for user surveillance and the installation of backdoors, along with failure to address reported defects [1] Group 2: Financial Impact - China accounted for 27.4% of Intel's revenue in 2023, making it crucial for the company's financial health amid recent challenges [2] - Intel's stock has been struggling due to poor earnings and job cuts, and the timing of the security review adds pressure on its market position [2] - U.S. chip policy restrictions have limited Intel's ability to export advanced products to Chinese clients, further complicating its revenue situation [2]