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US government halts Intel’s plan to bolster chip production in China

The Biden administration rebuffed Intel's project to increase chip manufacturing in China. (Image: Intel)
The Biden administration rebuffed Intel's project to increase chip manufacturing in China. (Image: Intel)
The White House has ardently denied Intel's plan to boost semiconductor manufacturing in China as it may be detrimental to national security. Intel wishes to help resolve the chip supply problems that are affecting the US. However, the Biden administration aims to revitalise local manufacturing.
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The Biden administration has rejected Intel’s proposal to enhance chip production in China due to strong hesitations about national security. Intel originally planned to produce silicon wafers in a facility in Chengdu, China. The tech company aimed to alleviate the supply chain issues in the US and requested federal aid to accelerate production. However, government officials were vehemently against the proposal.

The ongoing chip shortage has greatly hindered many tech and auto industries and resulted in the loss of jobs and profits. The US government emphasised that its goal is to resolve supply deficiencies while also revamping domestic manufacturing. Consequently, President Biden has put forward the CHIPS Act to allocate US$52 billion for local research and production to compete with China. Intel’s project in China poses a direct contradiction to this goal.

Furthermore, the Whitehouse is deliberating whether specific investments in China should be limited; and the National Security Advisor stated that officials are contemplating executing an outbound investment screening process. The US government is concerned that China will adopt the country’s leading-edge technologies, which may foster human rights abuses or endanger national safety.

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Aleem Ali
Aleem Ali - Tech Writer - 36 articles published on Notebookcheck since 2021
I became fascinated with computers from the age of 5 years old, starting with Windows 95. Since then, I have developed a passion for human interactions. After completion of my undergraduate degrees, my interest in technology grew and propelled me to push into new areas. Now, I seek to expand my knowledge of technology, people, and business; and I write articles about new and exciting technology and experiences. I also enjoy gaming and design.
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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2021 11 > US government halts Intel’s plan to bolster chip production in China
Aleem Ali, 2021-11-15 (Update: 2021-11-15)