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.
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
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
Comments
The Biden administration is 1000 percent correct in trying to stop our “Capitalist from selling the ROPES to OUR and the ENTIRE WORLD HANGING!”
If you want to imagine that I'm motivated by hate, I guess that's your right to be wrong.
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.
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.
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.
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.
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.
How much time do you spend trolling to spread misinformation and politically motivated lies?
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.
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.