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

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

Credit: Intel
Credit: Intel


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.

Read on AppleInsider
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Comments

  • Reply 1 of 95
    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. 
    williamlondonDnykjpRfC6fnBscat52rattlhedBosaKTR
  • Reply 2 of 95
    XedXed Posts: 1,111member
    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.
    williamlondonmikethemartiankillroyGeorgeBMacwatto_cobraKTRbeowulfschmidt
  • Reply 3 of 95
    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!” 
    cpsrotmayronnjas99aderutterkillroyelijahgviclauyyccat52narwhal
  • Reply 4 of 95
    cpsrocpsro Posts: 2,933member
    Manufacturing chips in China wouldn't really solve Intel's problem and would promote intellectual property theft.
    ronnjas99killroycat52narwhalwg45678qwerty52Beatslkruppgmul
  • Reply 5 of 95
    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.
    tmayentropysronnjas99elijahgcat52viclauyycqwerty52gmulPShimi
  • Reply 6 of 95
    glennh 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!” 
    You don't understand history of high tech. The chips have thousands times more transistors than forty years ago. The cost of equipment skyrocketed. Company need to mass produce chips in order to make profit. Intel is the largest chip manufacturer. It is now excluded from the largest chip sector. Those are used by smartphones. There is little to zero probability Apple or Android manufacturers will switch to Intel chips. Intel is hanging on the PCs. China is the biggest market for PCs I believe. Intel need to keep the cost of PC down to maintain PC sales in China. This is why it needs to increase chip manufacturing in China. Otherwise, China will switch to Apple Silicon macs in no time. 
    GeorgeBMac
  • Reply 7 of 95
    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.
    Are you an American? You are illogical. You do not live in China. Why are you afraid of losing freedom and democracy because of China? 
    williamlondonAlex_VGeorgeBMac
  • Reply 8 of 95
    tmaytmay Posts: 5,498member
    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. 
    Chip fabs are heavily automated, so it doesn't really matter all that much which country they are built in, but the investment is huge. Intel is asking to invest in Silicon Wafer production, not chip production. You haven't a clue about the comparative costs. 

    Even at that, I am absolutely against allowing continued investment in the PRC simply because much of the high tech from the West is dual use, ie, used in both Civilian and Military production. We certainly shouldn't enhance PLANRF's ability to build even greater numbers of more effective ballistic missiles and warheads, nor allow the PLAAF to build more and better more and better aircraft and air to air missiles.


    ronnwilliamlondonjas99killroycat52wg45678StrangeDaysJWSCqwerty52watto_cobra
  • Reply 9 of 95
    entropysentropys Posts: 3,200member
    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.
    Are you an American? You are illogical. You do not live in China. Why are you afraid of losing freedom and democracy because of China? 
    Well I agree with them.
    China is not capitalist.  Government and corporate are intertwined. While no longer solely owning the means of production, the government still controls the means of production. Price does not reflect cost.
    Xi is just following Stalin’s plan to sell the stupid capitalists enough rope to hang themselves, although this time it might pull it off.   Used to be pretty sanguine about this stuff, but it is clear the CCP leadership has legacy plans, and is increasingly aggressive on the international stage.
    Speaking of legacy plans, I wonder why Intel isn’t interested in Taiwan as a location? It is actually a functional democracy.

    williamlondonronnjas99killroycat52viclauyycAlex_Vqwerty52gmulwatto_cobra
  • Reply 10 of 95
    tmaytmay Posts: 5,498member
    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.
    Are you an American? You are illogical. You do not live in China. Why are you afraid of losing freedom and democracy because of China? 
    Gee, if only the PRC would limit itself to occupying Mainland China.

    Instead, it's all about invading Taiwan, occupying the South China Sea, and the First Island Chain, as if those were exclusive economic zones for the PRC. Moreover, the PRC is more than happy to export its brand of authoritarianism. Fortunately, the West is quite aware of the PRC's broad expansionist plans, and while late to constrain the PRC, the West is strengthening alliances to resist that expansionism, both militarily and economically.

    Meanwhile, the PRC has a limited timeframe to do all of this before its heavily senior demographics overwhelms its shrinking working population, all with a birth rate that is too little to maintain the population. It's probable that the PRC won't ever be a rich country, and can expect its population to halve by 2060.

    What the West is concerned about is that Xi will launch an invasion of Taiwan by 2025, and will attempt to challenge the West's military supremacy in the Pacific in this decade, but that risk diminishes by 2035.
    williamlondonronnjas99killroycat52StrangeDaysJWSCqwerty52gmulwatto_cobra
  • Reply 11 of 95
    entropys said:
    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.
    Are you an American? You are illogical. You do not live in China. Why are you afraid of losing freedom and democracy because of China? 
    Well I agree with them.
    US is not capitalist.  Government and corporate are intertwined. While no longer solely owning the means of production, the government still controls the means of production. Price does not reflect cost.
    Biden is just following Trump's plan to sell the stupid capitalists enough rope to hang themselves, although this time it might pull it off.   Used to be pretty sanguine about this stuff, but it is clear the US leadership has legacy plans, and is increasingly aggressive on the international stage.


    I corrected you just like George did to the other guy. 
    williamlondonshareef777
  • Reply 12 of 95
    Xed said:
    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.
    At this point, you'd pretty much have to be an idiot to advocate exporting high tech to China.

    China is at the cusp of improving their military to push the US and western interests out of the South China Sea, and a potential invasion of Taiwan is growing more and more likely. The world's most advanced chip maker - Taiwan Semiconductor Manufacturing Company - is right there which has to be the cherry on top for any mainland aggression. The mainland has been trying to develop their own chip manufacturing, but due to lack of expertise and corruption all attempts have ended in failure.

    You send manufacturing to China and the first thing they do is steal your designs and manufacturing techniques - the Chinese Communist Party has no respect for Intellectual Property and right now hostility to foreigners and foreign manufacturing is at an all time high.

    Please do try and keep up with current events and trends - the Chinese Communist Party is probably the greatest threat to western society at this point in time.
    ronntmaywilliamlondonkillroycat52shareef777wg45678StrangeDaysqwerty52gmul
  • Reply 13 of 95
    Xed said:
    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.
    At this point, you'd pretty much have to be an idiot to advocate exporting high tech to China.

    China is at the cusp of improving their military to push the US and western interests out of the South China Sea, and a potential invasion of Taiwan is growing more and more likely. The world's most advanced chip maker - Taiwan Semiconductor Manufacturing Company - is right there which has to be the cherry on top for any mainland aggression. The mainland has been trying to develop their own chip manufacturing, but due to lack of expertise and corruption all attempts have ended in failure.

    You send manufacturing to China and the first thing they do is steal your designs and manufacturing techniques - the Chinese Communist Party has no respect for Intellectual Property and right now hostility to foreigners and foreign manufacturing is at an all time high.

    Please do try and keep up with current events and trends - the Chinese Communist Party is probably the greatest threat to western society at this point in time.
    The US government is probably the greatest threat to western society at this point in time. When your MacBook Pros and iPhones cannot be delivered to Americans from China. 
    Alex_Vleftoverbacon
  • Reply 14 of 95
    tmaytmay Posts: 5,498member
    Xed said:
    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.
    At this point, you'd pretty much have to be an idiot to advocate exporting high tech to China.

    China is at the cusp of improving their military to push the US and western interests out of the South China Sea, and a potential invasion of Taiwan is growing more and more likely. The world's most advanced chip maker - Taiwan Semiconductor Manufacturing Company - is right there which has to be the cherry on top for any mainland aggression. The mainland has been trying to develop their own chip manufacturing, but due to lack of expertise and corruption all attempts have ended in failure.

    You send manufacturing to China and the first thing they do is steal your designs and manufacturing techniques - the Chinese Communist Party has no respect for Intellectual Property and right now hostility to foreigners and foreign manufacturing is at an all time high.

    Please do try and keep up with current events and trends - the Chinese Communist Party is probably the greatest threat to western society at this point in time.
    Informative interview with Andrew Erickson on the Pentagon's China Military Power Report (CMPR);

    https://www.19fortyfive.com/2021/11/how-powerful-is-chinas-military-the-pentagons-new-china-report-offers-answers/



    WRITTEN BYAndrew Erickson

    Andrew Erickson is a professor of strategy in the U.S. Naval War College (NWC)’s China Maritime Studies Institute (CMSI). He helped to establish CMSI in 2006, and has subsequently played an integral role in its development. Since 2008 Erickson has been an associate in research at Harvard’s Fairbank Center. He has taught courses at NWC and Yonsei University, and advises student research and provides curricular inputs at NWC and elsewhere. He helped to establish, and to escort the first iteration of, NWC’s first bilateral student exchange in China, which he continues to support. For over a decade, Erickson has managed NWC’s scholarly research relationship with Japanese counterparts.

    edited November 13 JWSCwatto_cobra
  • Reply 15 of 95
    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. 
    That is some pretty lame BS from you. Do you always make it up as you go along ignoring facts and relevant history.

    How much time do you spend trolling to spread misinformation and politically motivated lies?
    williamlondontmayviclauyycStrangeDaysmwhiteqwerty52gmulwatto_cobraDogperson
  • Reply 16 of 95
    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.
    Are you an American? You are illogical. You do not live in China. Why are you afraid of losing freedom and democracy because of China? 
    I am not an American. I am not afraid of losing freedom. All I said was I support freedom by buying products from free countries. Don't put words in my mouth. You are the one that mentioned China. I said I'm motivated by countries that are free and democratic. Stop putting words in my mouth. Learn to be respectful of what people say.

    Don't you have any "causes" that you back with your money? If so, does that make you afraid of the side you aren't supporting? I wouldn't say that, but you are saying that. Stop being so negative, judgmental and critical. What's wrong with someone supporting a good cause? Or are you saying that freedom isn't a good cause? Please explain what you are saying.
    edited November 13 cat52slow n easyqwerty52applguygmulwatto_cobraDogpersonmuthuk_vanalingam
  • Reply 17 of 95
    A good thing is that Intel management will hence forth be more sensitive to the China / USA security concerns - assuming the story is even factually true. The Intel people i have met are good people, the crème of the crop, really.  I found the same thing at IBM when, years ago, I worked on the IBM audit for their auditors.  Really decent people, have families, go to church and PTA meetings and all the good things people do.  And also the crème for the crop. And maybe Intel was just going to build ic’s for the China market.   For sure we don't know the whole story.    
    williamlondonwatto_cobra
  • Reply 18 of 95
    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. 
    Sure, just make everything in China. From high end cpu to F35 and even spy satellite, they will all cost 70% less. 

    Isn’t the orange man also push to make things in USA and move the production line back home? I guess he don’t meant it. After all, his MEGA hat and other trump products are made in China. 

    Biden should not pushing the “Buy American Provision”, what do he knows about capitalism, right? Just get things from China and it is all good. 


    williamlondon
  • Reply 19 of 95
    viclauyyc 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. 
    Sure, just make everything in China. From high end cpu to F35 and even spy satellite, they will all cost 70% less. 

    Isn’t the orange man also push to make things in USA and move the production line back home? I guess he don’t meant it. After all, his MEGA hat and other trump products are made in China. 

    Biden should not pushing the “Buy American Provision”, what do he knows about capitalism, right? Just get things from China and it is all good. 


    Open your eyes. Look around. Without China, Apple cannot make so many iPhones for the whole world people to use. Apple and TSMC made enough sales to bring better and better smartphones to the world each year. Sure, Apple can make phones outside China. Then these places will not be able to produce same number of phones as in China. Intel falls behind TSMC because it cannot sell enough core chips to support more R&D and equipment purchases. 
    williamlondon
  • Reply 20 of 95
    tmay said:
    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.
    Are you an American? You are illogical. You do not live in China. Why are you afraid of losing freedom and democracy because of China? 
    Gee, if only the PRC would limit itself to occupying Mainland China.

    Instead, it's all about invading Taiwan, occupying the South China Sea, and the First Island Chain, as if those were exclusive economic zones for the PRC. Moreover, the PRC is more than happy to export its brand of authoritarianism. Fortunately, the West is quite aware of the PRC's broad expansionist plans, and while late to constrain the PRC, the West is strengthening alliances to resist that expansionism, both militarily and economically.

    Meanwhile, the PRC has a limited timeframe to do all of this before its heavily senior demographics overwhelms its shrinking working population, all with a birth rate that is too little to maintain the population. It's probable that the PRC won't ever be a rich country, and can expect its population to halve by 2060.

    What the West is concerned about is that Xi will launch an invasion of Taiwan by 2025, and will attempt to challenge the West's military supremacy in the Pacific in this decade, but that risk diminishes by 2035.
    Both the PRC and Taiwan officially consider themselves to be the governments of ALL of China.
    You can't invade your own country.  This is an internal matter between factions within China, part of a stalemate in a civil war, and it is wildly inappropriate for the USA to be dictating who should prevail.  It should be up to the Chinese people to forge their own destiny.
    williamlondonAlex_V
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