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

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The White House has reportedly discouraged #Intel’s plan to increase chip production in China for security reasons, according to a new report.

Intel has proposed using a plant in Chengdu, China, to produce silicone wafers. According to Bloomberg, production could begin by the end of 2022 and could help alleviate supply chain problems.

Bloomberg reports that the Biden administration strongly discouraged the plan. Although the White House is working to ease supply restrictions, it is also working to return critical components to the United States

Reportedly, the administration is currently considering whether to limit investments in China. A White House spokesman said the administration was “very focused on preventing China from using American technology, knowledge and investment to develop state-of-the-art capabilities.”

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

“Intel and the Biden administration share the goal of addressing the current microchip shortage across the industry, and we have explored a range 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 waffle factories in the United States and Europe, ”said Intel

After talks with administration officials, Intel has no plans to continue with its production plans in China, sources familiar with the matter said. Bloomberg.

The ongoing supply shortage affects a variety of industries, including technology and automotive markets. Restrictions in the supply chain and chip manufacturing sectors cost Apple $ 6 billion in the fourth quarter of 2021, for example, and the company expects a similar blow in the quarter in December.

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