White House shot down Intel plans to increase chip production in China

The White House has reportedly discouraged an #Intel plan to increase chip production in China over security concerns, according to a new report.

Intel has proposed using a facility in Chengdu, China to make silicon wafers. According to Bloomberg, the production could kick off by the end of 2022 and could help mitigate supply chain issues.

Bloomberg reports that the Biden administration strongly discouraged the plan. Although the White House is working to alleviate supply crunches, it's also working to bring critical component construction back to the U.S.

Reportedly, the administration is currently mulling whether to place restrictions on investments into China. A spokesperson for the White House said the administration is "very focused on preventing China from using U.S. technologies, know-how and investment to develop state-of-the-art capabilities."

In a statement to Bloomberg, Intel said that it remains open to other potential solutions that could help meet the high demand for essential semiconductor components.

"Intel and the Biden administration share a goal to address the ongoing industrywide shortage of microchips, and we have explored a number of approaches with the U.S. government. Our focus is on the significant ongoing expansion of our existing semiconductor manufacturing operations and our plans to invest tens of billions of dollars in new wafer fabrication plants in the U.S. and Europe," Intel said

Following the discussions with administration officials, Intel has no plans to move forward with its China production plans, sources familiar with the matter told Bloomberg.

The ongoing supply shortage is affecting a variety of industries, including the technology and automotive markets. Constraints in the supply chain and chip manufacturing sectors cost Apple $6 billion in its Q4 2021, for example, and the company expects a similar hit to its December quarter.

95 Comments

waveparticle 3 Years · 1497 comments

About 3 years ago

The chip shortage will continue under Biden administration. Companies will not manufacture chips in US. They cannot make money. If they try to raise prices they need to double or triple the prices. And this route is not working. Democrats have no concept of capitalism.

Xed 4 Years · 2896 comments

LOL I can't wait to hear the contortions of people against the gov't intervening in private companies that are also jingoists that hate private US companies from doing any business outside the US, especially in China.

glennh 9 Years · 74 comments

waveparticle said:

The chip shortage will continue under Biden administration. Companies will not manufacture chips in US. They cannot make money. If they try to raise prices they need to double or triple the prices. And this route is not working. Democrats have no concept of capitalism.

Bullshit! This crap started under the Reagan Administration. I live in Silicon Valley and personally saw Intel strip and close chip factories in the past to move the equipment over seas to increase profits to enrich executives bonuses through excessive profits through cheap labor and not regards for either domestic and foreign workers, the environment or national security concerns.

One would think that after the World’s Covid PPE shortages made worst by the hoarding, excessive profiteering and the arrogant Chinese Communist Party using its control of the manufacturing as a political weapon the world has learned the lesson of depending on a inherently corruption and authoritarian to deliver essential goods.

The Biden administration is 1000 percent correct in trying to stop our “Capitalist from selling the ROPES to OUR and the ENTIRE WORLD HANGING!”

cpsro 14 Years · 3239 comments

Manufacturing chips in China wouldn't really solve Intel's problem and would promote intellectual property theft.

22july2013 11 Years · 3736 comments

Xed said:

LOL I can't wait to hear the contortions of people ... that hate private US companies from doing any business outside the US, especially in China.

I buy from non-dictatorships any time I can, even when it costs more. But I don't hate. Don't make it sounds that I'm motivated by hate. I'm motivated by love for freedom and democracy.

If you want to imagine that I'm motivated by hate, I guess that's your right to be wrong.