CONFIG_KVM_XICS is not available for thedefaultarchitecture x86.
Result is shown for architecture powerpc

KVM in-kernel XICS emulation

configname: CONFIG_KVM_XICS

Linux Kernel Configuration
└─>Virtualization
└─>KVM in-kernel XICS emulation
In linux kernel since version 3.1 (release Date: 2011-10-24)  
Include support for the XICS (eXternal Interrupt Controller
Specification) interrupt controller architecture used on
IBM POWER (pSeries) servers.