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Intel's China Problem Just Got A Lot Worse

Photograph accompanying Intel's China Problem Just Got A Lot Worse (source: ZeroHedge)
ZeroHedge — publisher photograph (see original for photographer credit)

Huawei has unveiled its first desktop computer running its own HarmonyOS operating system, the Qingyun HM650, which is made entirely with China-made components and does not include Intel or Qualcomm chips. The machine features a 10-core, 20-thread processor and Huawei's Maleoon 910 graphics, and is being pitched to finance, enterprise, and energy customers.

This development is significant for Intel, as China was its largest market in 2023, accounting for 27% of its sales. Huawei has also announced that cumulative shipments of HarmonyOS computers have passed one million units, with 141,000 units shipped in 2025 alone.

The company is working to expand its offerings and has developed a range of HarmonyOS laptops, including the MateBook 14 and the 18-inch MateBook Fold. Huawei's move to develop its own operating system and hardware is seen as a response to Washington's decision to revoke export licenses that allowed Intel and Qualcomm to sell chips to the company.

Beijing has also ordered government agencies and party organs to buy "safe and reliable" processors and operating systems, which has led to a shift towards domestic suppliers. Huawei is also working on developing its own chip-making technology, including DUV lithography tools, as part of China's push to build its own semiconductor industry.