Tech

Intel will not be able to increase its production in China

Given the current chip shortage situation, manufacturers are looking for all kinds of possible solutions. And Intel, as one of the leading companies in the sector, is of course no exception. And not only because producing more integrated means more sales, but also because the impact of this situation is being felt not only in the technology sector, the consequences are also being felt in many other sectors in which it depends on integrated.

One of the solutions that Intel has proposed for this problem has been increasing its production volume in China, employing a factory located in Chengdu. This would not be an immediate solution, however, the necessary preparations are complex, so production in the same could have started at the end of 2022. Something that fits with the perception, more and more generalized, that during the year that the shortage is coming will gradually decrease, but it will not be until 2023 that supply and demand will be balanced again.

Intel and the Biden administration share the goal of addressing the current microchip shortage across the industry, and we have explored a number of approaches with the United States government.”Said the company. «Our focus is on the continued significant expansion of our existing semiconductor manufacturing operations and our plans to invest tens of billions of dollars in new wafer manufacturing plants in the United States and Europe.«.

However, although Intel and the Biden administration agree on the objective, the same does not appear to be the case in terms of the means to achieve it. And, as we can read on MSN, White House rejects Intel’s plan to boost chip production in China. Something that really should not come as a surprise for the company, because as we can read in the same medium, already when Intel presented its plan a few weeks ago, officials of the Biden administration strongly discouraged the measure.

The reason for opposition to Intel’s plans by the White House would be security, and more at a particularly difficult time, in which the US executive would be considering the possibility of restricting certain strategic investments in the Asian giant. In the words of a White House representative, who declined to comment on specific transactions or investments, he did say that the administration is “highly focused on preventing China from using US technologies, know-how and investment to develop cutting-edge capabilities«.

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