American semiconductor giant AMD has been accused of sharing sensitive tech intel with China.
According to a recent Wall Street Journal report, AMD partnered up with Sugon Information Industry back in 2016, with both the US Commerce and Defence Departments voicing concerns that this deal is a threat to national security.
Sugon is a supercomputer maker with strong ties to the Chinese government, and this deal is suspected of allowing AMD to share x86 CPU technology via a ‘complex structure’ between the two companies to get around US laws and regulations.
AMD has rejected the reports, saying it had ‘diligently and proactively’ discussed the matter with both departments, as well as other agencies that were involved, and was reassured that there were ‘no objections whatsoever’. AMD fired shots at WSJ as well, saying the report was incomplete, conveniently leaving out information on ‘significant protections’ that were set up to make sure China doesn’t get its tech.
WSJ claims AMD removed encryption from the hardware it sells to China.
China and the US have been fighting a trade war for quite some time now, and AMD could very well be the next company to be caught in the crossfire. First it was Chinese ZTE, which almost went out of business. Then it was Huawei, which is still trying to prove it does not pose a national security threat, and now it could very well be AMD’s turn.