It seems that the global chip shortage is spreading to more and more technology areas with each passing day. Previously, it was reported that Tesla was shipping without USB ports, new BMWs without touchscreens were coming, and production cuts and disruptions for the Switch, PS5 and iPhone 13 were also reported, which Intel predicts that the chip problem will continue until 2023. It means it could be more accurate.
According to a report by Bloomberg, Intel’s efforts to speed up chip production in China have been challenged by the Biden administration. According to information from close sources, Intel has offered to make silicon wafers at a Chengdu factory in China, which he said could start production towards the end of 2022. However, Intel’s plans were not well supported by White House officials due to potential security issues.
Intel and the US government seek other solutions to chip shortage shortage
Management’s view is a serious obstacle to Intel’s progress, as Intel needs government funding to accelerate production. As Bloomberg notes, Intel, after speaking to government officials, said it currently has no “plan” to manufacture wafers in China and will instead consider “other solutions.”
In its statement, Intel stated that “Intel and Biden management share the same goal of addressing the continuing industry-wide microchip shortage,” stating that they are seeking different approaches to this problem with the US government. One of these approaches is in line with the administration’s goals to manufacture key components in the US. It is also highly probable that there may be investments in factories producing wafers in the USA and Europe.
The Biden administration seems to remain skeptical of China’s use of technology. Biden has recently spoken about current Trump-era policies that place restrictions on the government’s use of the China-based Huawei and ZTE brands and label both companies as threats to national security. With the new legislation Biden signed, these two brands were prevented from getting a license from the Federal Communications Commission. In addition, Biden has previously imposed restrictions on the sale of hacking tools to China, restricting the US from investing in certain companies located in China.
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