As the trade situation between the US and China gets more complicated, we are seeing more significant impact in the tech world. This time around, Intel is going to temporarily lose a good chunk of its global server processor sales.
The US is clamping down on companies trading with Chinese companies that may have ties to China's government or military. The list includes 20 companies that are part of the ban, with Huawei and Inspur being two particularly notable examples. For Intel, sales to Inspur are said to represent 26 percent of its global server/processor sales.
Inspur is a server manufacturer based in Shandong, a Chinese province located between Peking and Shanghai. The company is huge in the server market, sitting as the world's third largest server manufacturer and the biggest in China.
Intel has confirmed that it has “temporarily paused shipments to this one customer in order to make a few changes to our supply chain as required by US law”.
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KitGuru Says: A 26 percent drop in server revenue is significant, but Intel may be able to make up for it with other deals. How long do you reckon this most recent ban will last?