White House is said to nix Intel plan to boost chip production in China
The Biden administration is said to have ended a plan for $Intel(INTC.US$ to boost production of chips through manufacturing them in China amid security concerns.
Intel had proposed using a factory in Chengdu, China, to make silicon wafers in order to help ease the current global chip shortage, according to a Bloomberg report, which cited people familiar. The White House is said to have "strongly discouraged" the move.
Intel told Bloomberg in a statement it remains open to “other solutions that will also help us meet high demand for the semiconductors essential to innovation and the economy.”
The report comes as Biden and Chinese President President Xi Jinping are scheduled to hold a virtual meeting on Monday.
Recall in August the WSJ reported that Intel CEO met with Biden Administration officials to pitch a big chip investment plan. CEO Pat Gelsinger has been promoting Intel to build more chip factories in the U.S. and other countries as part of an attempt to reduce over-reliance on suppliers in Asia, and especially China.
Intel plans to invest up to $95B to build semiconductor production facilities in Europe, another step in the company's plan to become a global foundry player amid the chip shortage, the WSJ reported in September.
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Brandon Golden : show that China is willing to work with the rest of the world, including the USA
Geminiasianboi : That deal would be a major win for China more than anyone else, and not much of a win for Biden, IMO. A better win for Biden would be China opening up about the Wuhan lab, but I don't plan to hold my breath.
IT farmer Geminiasianboi: When are you going to move on ? Nothing to see. US intelligence said so since last year
Marvan IT farmer: Thank goodness for honest US intelligence, eh? I'm glad they cleared up that confusion about Iraq's WMD as well.
r8ntdxstAw IT farmer: The same US Intelligence that said Saddam had nukes?
xoshi8HiuI IT farmer: And the same US intelligence that said it was safe to withdraw from Afghanistan? And the same US intelligence who vetted the Steele Dossier? You may trust them but almost no one else does.
7KMNtrPYB1 : One thing Biden Admin got right so far.
PRC wove themselves into the economy of every country in the world and now possesses dangerous leverage over all.
LTDrYYZbAO 7KMNtrPYB1: Unfortunately for them that works both ways. If I borrow several trillion dollars from you, who has more control? China is now completely dependent on foreign trade. They cannot even completely feed their 1.4 billion population and they are hurting for coal to power their cities in winter. Even a slowdown in trade will hurt them badly. They have to tread lightly, even while threatening everyone.
Ruuussell : Memo to VC Community: You're next...(Sequoia Capital et.al made 67 deals in "Red" chip companies since the start of 2020 according to the WSJ)...
Old Capital : This could be good news for higher volatility ... long and short INTC. INTC premiums are fun! fun times!
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