According to a report published in Bloomberg, Intel’s efforts to accelerate chip production in China have been challenged by the Biden administration. Sources close to the situation said that Intel has proposed making silicon wafers at a factory in Chengdu, China, which could begin production towards the end of 2022. However, Intel’s plans were literally blocked by White House officials due to potential security issues.
Intel needs government funding to speed up production. That’s why the Biden administration’s view is Intel’s
greatly slows down its progress. Intel is also currently working on other plans to manufacture silicon chips in China after consulting with government officials.
Biden’s obstacle to Intel chip production
“Intel and Biden management shared a goal to address the continuing industry-wide microchip shortage, and we explored a number of approaches with the US government,” Intel told Bloomberg. ” said. One such approach could be to invest in silicon wafer-making factories in the US and Europe, in line with management goals to manufacture key components in-country.
The Biden administration remains skeptical about China’s use of technology. Biden recently expanded on existing Trump-era policies that imposed restrictions on the government’s use of the China-based brands Huawei and ZTE, and labeled both companies as threats to national security.
Biden’s newly signed legislation prevents the two brands from obtaining licenses from the Federal Communications Commission. Additionally, Biden has previously imposed restrictions on the sale of hacking tools to China and also banned the US from investing in Chinese surveillance companies.
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