Popular Hong Kong newspaper Oriental Daily recently reported that sources familiar with the matter revealed that the U.S. Biden administration rejected Intel’s plan to increase chip production in China on the grounds of security concerns. The world’s largest chip maker has proposed to use a factory in Chengdu, Sichuan Province, to produce silicon chips. The discussion was conducted in private. The production line may be launched by the end of next year, helping to ease global supply tensions. At the same time, however, Intel has been seeking federal assistance to strengthen research and production in the United States. Officials in the Biden administration strongly opposed the plan. The government is working hard to solve the chip shortage problem. It is especially working hard to bring the production of important components back to the States. Intel said its focus is on the continued significant expansion of its existing semiconductor manufacturing business. The plan is to invest tens of billions of dollars in new wafer manufacturing plants in the U.S. and Europe. A White House representative declined to comment on specifics but stated that the government is “very much focused” on preventing China from using U.S. technology, to develop first-class capabilities.
Source: Oriental Daily, November 13, 2021