[The Exiled]

White House opposes Intel's production plans in China

To counter the current chip crisis, Intel planned to start up a wafer factory in Chengdu, China. They wanted to start producing the first silicon wafers there as early as the end of 2022. But the Biden government is opposed to Intel's plans and strategic investments in China - according to a report Bloomberg. Export bans and high tariffs are intended to prevent certain products from being imported into China. These circumstances and a planned sovereignty of Beijing are driving plans there to become more independent of the USA in terms of semiconductor production. While the actual production of the chips is carried out there (and in South Korea and Taiwan), most of the resources that are important for manufacturing come from China - including the wafers. The USA and companies based there are currently investing billions in semiconductor production. The US government's CHIPS initiative is releasing funds totaling 52 billion US dollars for research and manufacturing. Samsung in South Korea and TSMC in Taiwan are also investing heavily in their production capacities with the help of state aid.

Intel didn't directly acknowledge the government objection in a statement, but welcomed "other solutions" to help meet chip demand. The company had looked at a "number of approaches" in tandem with the US, including new wafer manufacturing in the US and Europe. While the sources didn't elaborate on the security issues with Intel, company chief Pat Gelsinger previously said a heavy dependence on Asian manufacturing represented a supply chain threat. There have also been historical concerns companies were improperly sharing sensitive technology with China. Even if security weren't an issue, economic development might be a factor. Biden has pushed for more manufacturing in the US to address chip shortages, and Intel's reported Chinese expansion would have contradicted that policy. It also wouldn't have helped attempts to counter China's growth as an economic superpower.

Izvor: HardwareLUXX, Engadget i Bloomberg