The White House allegedly challenged Intel’s plans to increase chip production in China
Intel’s efforts to accelerate chip production in China have apparently been contested by the Biden administration, according to a report from Bloomberg. Sources near the scenario told Bloomberg that Intel proposed making silicon wafers in a Chengdu, China factory, which might begin production towards the end of 2022. Intel’s strategies were “strongly dissuaded” by White House officials due to prospective security concerns.
Considering that Intel requires to protect financing from the federal government in order to increase production, the administration’s opinion holds some weight on Intel’s course forward. As Bloomberg notes, Intel said it presently has “no plans” to produce silicon wafers in China after discussing it with government authorities, and that it will rather consider “other solutions.”
The worldwide chip shortage appears to be seeping into more locations of innovation every day. With Teslas supposedly shipping without USB ports, newer BMWs coming without touchscreens, and cuts in production for the Switch, PS5, and iPhone 13, it’s beginning to look like Intel’s prediction may be right; we might not see completion of the chip scarcity until 2023.
The Biden administration remains hesitant about China’s use of technology. Biden recently expanded on existing policies from the Trump age that puts limitations on the federal government’s use of China-based brand names Huawei and ZTE, as well as labels both companies as dangers to nationwide security. Biden’s newly-signed legislation obstructs the 2 brand names from getting licenses from the Federal Communications Commission. In addition, Biden previously put limitations on the sale of hacking tools to China and likewise banned United States financial investment in Chinese monitoring companies.
“Intel and the Biden administration share an objective to address the ongoing industrywide lack of microchips, and we have actually checked out a variety of techniques with the U.S. federal government,” Intel said in a statement to Bloomberg. Among these methods might be to buy factories to manufacture silicon wafers in the US and Europe, in line with the administration’s goals of producing essential parts within the United States.
Given that Intel needs to secure financing from the government in order to ramp up production, the administration’s opinion holds some weight on Intel’s course forward. The Biden administration remains skeptical about China’s use of technology.