According to reports, Intel’s efforts to increase production in China have been suppressed in the United States, and severe chip shortages will continue for some time. The company once proposed to use a factory in Chengdu to increase the production of silicon wafers, which may be built before the end of 2022.
While considering expansion in China, Intel has been seeking federal assistance from the United States to increase production and research in China. Bloomberg According to anonymous sources involved in the review, the Biden government strongly recommends not to use the Chengdu plant. This may be due to the current promotion of more manufacturing in the United States, technology and China’s security issues.
The United States is currently deciding whether to restrict investment, and may even use foreign investment screening mechanisms to restrict investment. The government is worried about China’s use of technology and investment to endanger national security. Manufacturing chips in Chengdu seems to be no exception.
It seems that Intel will follow the government’s wishes. This is particularly not surprising given the CHIPS bill currently awaiting passage by Congress. It was originally proposed as the Endless Frontier Act, and then received enough votes to pass the Senate in July as the American Innovation and Competition Act.
Regardless of the name, the bill will have $52 billion in funding for silicon research and manufacturing in the United States. It has also been touted as a way to compete with China, and some have even speculated about rules to prevent companies from participating in grants.
The shortage of chips is a bit strange. An analysis company predicts that there will be overproduction in 2023, thanks to all current efforts to increase production. To be fair, this has happened before. On the other hand, the CEO of StMicro expects that the current shortage will continue until the first half of 2023, and the CEO of Nvidia does not believe that the shortage will end soon. Although AMD’s CEO hopes that the shortage will be alleviated by the end of 2022.
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