American chipmaker Intel temporarily stopped selling chips to China's largest server company Inspur.
Inspur, the world's third-largest server manufacturer, was last month placed on a Department of Defense-created list of companies with alleged ties to the Chinese military.
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On July 1, Chinese media began reporting that Intel, responsible for developing the CPU in the vast majority of servers, had stopped shipping to Inspur.
But by July 2, shipments were set to resume. “Intel had to make adjustments to its supply chain to ensure compliance with US laws, and so had no choice but to pause supplies to the customer,” a spokeswoman from Intel China told the South China Morning Post on Thursday night.
“This suspension is expected to be no more than two weeks, and we will resume supplies to the customer as soon as possible.”
It is not clear which law Intel is referring to - the DoD's list was meant to be advisory only, and has yet to be followed by sanctions, at least publicly. This week, Republican Senator Marco Rubio said that he is preparing a bill to ban Chinese companies from US capital markets if they engage in spying, human rights abuse, or support China’s military.
Inspur did not respond to multiple requests for comment from DCD over the past few week, an issue other media are also reporting.