China is accusing Intel of security flaws

Intel has been heavily criticized by the China Cybersecurity Association, and this could pose a major challenge for the technology giant. Among the accusations is that the company was maintaining backdoors in its systems, which would allow secret surveillance and digital espionage.

Furthermore, Intel has also been accused of security flaws, but has already started taking action about it. Still, these accusations have raised some concerns about national security and the climate of tension could end up generating disastrous consequences for the company.

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Intel accused of security flaws

According to a statement from the China Cybersecurity Association, Intel has made significant profits in the country, but continues to act in ways that harm Chinese interests and put national security at risk.

The company has been criticized for security flaws in its products, which include vulnerabilities in its processors, which would allow malicious actors to steal confidential and sensitive information from users.

Among the main flaws highlighted in the accusation are the GhostRace and Indirector attacks, which leave users exposed to the risk of data theft. The GhostRace attack affects multiple platforms, including Arm processors, while Indirector primarily targets Intel’s Raptor Lake and Alder Lake chips.

Although the company has provided some guidance to mitigate these risks and protect users, the impact of these vulnerabilities has been intense.

In addition to security vulnerabilities, Intel is also dealing with criticism over the instability of its 13th and 14th generation Intel Core processors. The Chinese group revealed that many users suffered from performance problems, which could further undermine confidence in the product. In response, Intel released a microcode update (0x12b) to fix the issues and offered an extended warranty for affected chips.

The most serious accusations, such as installing backdoors in its systems, are still under investigation. To date, no concrete evidence has been presented to support this accusation, but the mere fact that it has been raised has damaged the company’s image and shaken the trust of its partners and customers.

Impacts of the Chinese market

According to data from Statista, China is Intel’s largest market, generating $14.85 billion in revenue in 2023, with the United States coming in second at $13.96 billion. Additionally, China accounted for more than a quarter of Intel’s $54 billion in total revenue last year.

In other words, losing the Chinese market could end up having devastating consequences for the company. Especially now that Intel is already facing significant difficulties in the economic scenario. In its latest report, the company announced losses of US$1.6 billion, which makes maintaining its position in the Chinese market even more crucial. An eventual loss of this market could mean the “final blow” for the company, unless the US intervenes with significant support.

The role of the US and the CHIPS Act

While Intel grapples with these issues, the company is still a central pillar of the CHIPS Act, a US government program that promises to boost innovation in the semiconductor industry. The goal of the CHIPS Act is to reduce America’s dependence on foreign suppliers and strengthen domestic production of chips, as they are essential to numerous industries, from electronics to automobiles.

As part of this plan, Intel received US$8.5 billion in direct investments from the federal government. But even so, US financial support may not be enough to compensate for a possible loss of the Chinese market. Washington, for its part, is adopting an increasingly aggressive stance against China, imposing sanctions and blockades on the country’s chip and artificial intelligence sector, with the aim of protecting its own strategic interests.

Accusations are already starting to affect Intel

Although China’s accusations against Intel have not yet resulted in concrete actions, the repercussions have already affected the company. Intel’s share price fell around three percent at market open after the accusations were announced, showing that investors appear increasingly uncertain about the company’s future in the Asian country.

If tensions increase and end up bringing punitive measures against Intel, the company will face a serious crisis. The chip giant’s survival may depend on Intel’s ability to restore its relationship with China or, at least, find new ways to offset possible losses in the market.

Fonte: tomshardware