Intel’s efforts to hurry up chip manufacturing in China have reportedly been contested by the Biden administration, in accordance with a report from Bloomberg. Sources near the state of affairs advised Bloomberg that Intel proposed making silicon wafers in a Chengdu, China manufacturing unit, which might begin manufacturing in the direction of the tip of 2022. Nonetheless, Intel’s plans had been “strongly discouraged” by White Home officers on account of potential safety points.
Since Intel must safe funding from the federal government as a way to ramp up manufacturing, the administration’s opinion holds some weight on Intel’s path ahead. As Bloomberg notes, Intel stated it presently has “no plans” to supply silicon wafers in China after discussing it with authorities officers, and that it’s going to as an alternative think about “different options.”
“Intel and the Biden administration share a purpose to handle the continuing industrywide scarcity of microchips, and we now have explored plenty of approaches with the U.S. authorities,” Intel stated in a press release to Bloomberg. One in all these approaches could also be to spend money on factories to fabricate silicon wafers within the US and Europe, consistent with the administration’s targets of producing important elements throughout the US.
The Biden administration stays skeptical about China’s use of know-how. Biden just lately expanded on present insurance policies from the Trump period that places restrictions on the government’s use of China-based brands Huawei and ZTE, in addition to labels both companies as threats to national security. Biden’s newly-signed laws blocks the 2 manufacturers from obtaining licenses from the Federal Communications Commission. Moreover, Biden beforehand put restrictions on the sale of hacking tools to China and likewise banned US investment in Chinese surveillance companies.
The global chip shortage appears to be seeping into extra areas of know-how every single day. With Teslas reportedly shipping without USB ports, newer BMWs coming without touchscreens, and cuts in manufacturing for the Switch, PS5, and iPhone 13, it’s beginning to seem like Intel’s prediction is likely to be proper; we could not see the end of the chip shortage until 2023.