Intel’s Chip Production Plan in China Disapproved by White House

Intel Corporation’s plan to increase chip production in China was rebuffed by the White House over security issues and concerns. The ongoing chip shortage continues to pose as a major threat to manufacturers worldwide.

The proposal made by Intel Corp. focused on boosting chip manufacturing at a factory in Chengdu, China. According to plans, the manufacturing could have been on track by the end of next year and would possibly ease the supply strain. However, the plan was met with resistance and strong disapproval. The chip shortage has increased challenges for many tech-related firms in the U.S. leading to revenue losses and slow production. The U.S aims to tackle the problem by researching and bringing production to the country.

Intel Corporation will shift focus on finding alternative solutions to counter the demand of semiconductors. The company stated, “Intel and the Biden Administration share a goal to address the ongoing industry wide shortage of microchips, and we have explored a number of approaches with the U.S government. Our focus is on the significant ongoing expansion of our existing semiconductor manufacturing operations and our plans to invest tens of billions of dollars in new wafer fabrication plants in the U.S and Europe.”

The White House is currently discussing options to limit or restrict investments in China and ensuring it does not use U.S technologies. Other major companies are hoping to see the $52 billion fund being passed by the congress that will boost domestic research. The act will help counter China and avoid supply crunches in the future.

Intel Corporation previously manufactured its own chips but faced competitions from other corporations such as Samsung and TSMC. The firm is currently in the process of setting up its own plants in Arizona to limit reliance on outsourced production.