The White House reportedly blocked Intel from expanding chip production in China


According to Bloomberg sources, the Biden government “strongly discourages” Intel from expanding its chip production in China due to security factors in order to alleviate the problem of chip shortages. If not blocked, these new production capacities were originally scheduled to go online before the end of 2022. Although Intel has not explicitly given up its plans to expand production in China, it is believed that there are no plans at the moment. In its statement, Intel itself did not clearly point to government pressure as the main reason for the suspension of the expansion plan, only saying that it welcomes “other solutions” to fill the chip gap. This includes setting up new factories in the U.S. or Europe, but these programs are obviously more hurried.

However, as US-China relations continue to deteriorate, this situation is not too unexpected. In addition to pressure from government policies, Intel CEO Pat Gelsinger once said that excessive reliance on Asian production may become a threat to the supply chain. At the same time, what technology technology companies can share with China will inevitably be more restricted in the future, and investment in China is likely to be at risk.

In any case, this means that the US government attaches great importance to national security and technological secrecy. Therefore, the chip shortage may continue for a while, and it may not have a chance to alleviate until new factories around the world are started.

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