The White House has rejected Intel’s plans to increase chip production in China

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The White House has reportedly discouraged an #Intel plan to increase chip production in China over security concerns, according to a new report.

Intel has proposed using a facility in Chengdu, China to manufacture silicon wafers. According to Bloomberg, production could start by the end of 2022 and could help mitigate supply chain problems.

Bloomberg He reports that the Biden administration has strongly discouraged the plan. Although the White House is working to alleviate supply crises, it is also working to bring the construction of critical components back to the United States.

The administration is reportedly currently considering whether to restrict investment in China. A White House spokesperson said the administration is “very focused on preventing China from using US technology, know-how and investment to develop cutting-edge capabilities.”

In a statement a Bloomberg, Intel said it is open to other potential solutions that could help meet the high demand for essential semiconductor components.

“Intel and the Biden administration share a goal of addressing the microchip shortage across the industry, and we have explored a range of approaches with the US government. Our goal is the ongoing significant expansion of our manufacturing operations. existing semiconductors and our plans to invest tens of billions of dollars in new wafer fabrication facilities in the US and Europe, “said Intel

Following discussions with administration officials, Intel has no plans to move forward with its production plans in China, sources familiar with the matter said. Bloomberg.

The continuing shortage of supply is affecting a variety of sectors, including the technology and auto markets. Constraints in the supply chain and chip manufacturing sectors cost Apple $ 6 billion in it is the fourth quarter of 2021, for example, and the company expects it a similar success to its December quarter.

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