Intel Corporation (NASDAQ:INTC) is used largely across the world by all type of government organizations as well as private ones. The Intel chip market is on a decline and the situation may get worse after a recent decision from Russia where the government has decided to domestically produce a computer chip named ‘Baikal.’ This move has come because the Russian government is concerned about issues such as spying and processor back doors and therefore they want to elbow the processor from AMD and Intel out of the government usage.

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Based on Linux

The computers running on Intel Corporation (NASDAQ:INTC) and AMD will be replaced by two types of Baikal chips: Baikal M and the Baikal M/S. ARM Cortex-A 57 64-bit processor will provide the foundation for designing of these chips, according to a report from  ITAR-TASS, a news agency in Russia.

The initiative for developing the processor has got a green signal from the President of Russia, who himself will make efforts to push forward the project. The Russian government had plans of moving all its computers to run on the Linux operating system, which was announced four years back and this move follows that one.

A big loss for Intel

The processor made in Russia will be named as ‘Baikal,’ which derives its name from the world’s most voluminous freshwater lake. The chip will be manufactured with the joint effort of a supercomputer maker based in Russia namely T-Platforms and Rostec, state defence corporation. The co-financier for the chip is Rosnaso, which is a Russian state-run technology firm.

Every year around $1.3 billion are spent on buying about 700,000 PCs and 300,000 servers by the Russian government and state-run firms. Considering such numbers, the ‘Baikal’ processor would pose a huge threat to the business of the major tech giants in the US including Intel Corporation (NASDAQ:INTC). The U.S. chip makers can take a sigh of relief for one year till the designing of the Russian microprocessor ‘Baikal’ takes place, but it would be good if they take some measures for boosting the sales of their chips.