White House Spurns Intel Plan to Boost Chip Production in China

choi

Bloomberg, Nov 13, 2021.
https://www.bloomberg.com/news/a ... production-in-china
https://www.supplychainbrain.com ... production-in-china

Quote:

(a) "The Biden administration spurned a plan by Intel Corp to increase production in China over security concerns, dealing a setback to an idea pitched as a fix for US chip shortages, according to people familiar with the deliberations.

"Intel, the world’s largest chipmaker, has proposed using a factory in Chengdu, China, to manufacture silicon wafers, said the people, who asked not to be identified because the discussions were private. That production could have been online by the end of 2022, helping ease a global supply crunch. But at the same time, it’s been seeking federal assistance to ramp up research and production in the US.

"When presented with the plan in recent weeks, Biden administration officials strongly discouraged the move, the people said.

"The situation underscores the challenges of the chip shortage, which has hobbled the tech and auto industries, cost companies billions in lost revenue and forced plants to furlough workers. The administration is scrambling to address constraints, but it’s also trying to bring production of vital components back to the US — a goal Intel's China plan didn't serve.

(b) "Following deliberations with the Biden team, Intel has no plans to add the production in China at the moment, a person familiar with the decision said. Still, such scenarios could arise again, and the administration may need to decide what rules come attached to the grant money [from CHIP Act, which is yet to pass].

Note:
(a) Bloomberg placed the report behind paywall.
(b) As you can see from the alternative link, the report is lengthy. However, very few words in the report are worth reading (we are familiar with the rest), which are quoted above.