The White House allegedly challenged Intel’s plans to increase chip production in China

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Intel’s efforts to pace up chip production in China have reportedly been contested by the Biden administration, in accordance to a report from Bloomberg. Sources shut to the state of affairs instructed Bloomberg that Intel proposed making silicon wafers in a Chengdu, China manufacturing facility, which may begin production in the direction of the top of 2022. However, Intel’s plans have been “strongly discouraged” by White House officers due to potential safety points.

Since Intel wants to safe funding from the federal government in order to ramp up production, the administration’s opinion holds some weight on Intel’s path ahead. As Bloomberg notes, Intel mentioned it presently has “no plans” to produce silicon wafers in China after discussing it with authorities officers, and that it’s going to as an alternative take into account “other solutions.”

“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,” Intel mentioned in a press release to Bloomberg. One of those approaches could also be to make investments in factories to manufacture silicon wafers in the US and Europe, in line with the administration’s objectives of producing important parts inside the US.

The Biden administration stays skeptical about China’s use of know-how. Biden just lately expanded on current insurance policies from the Trump period that places restrictions on the government’s use of China-based brands Huawei and ZTE, in addition to labels both companies as threats to national security. Biden’s newly-signed laws blocks the 2 manufacturers from obtaining licenses from the Federal Communications Commission. Additionally, Biden beforehand put restrictions on the sale of hacking tools to China and in addition banned US investment in Chinese surveillance companies.

The global chip shortage appears to be seeping into extra areas of know-how daily. With Teslas reportedly shipping without USB ports, newer BMWs coming without touchscreens, and cuts in production for the Switch, PS5, and iPhone 13, it’s beginning to appear like Intel’s prediction could be proper; we might not see the end of the chip shortage until 2023.

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