Intel was reportedly discouraged from producing more silicon wafers in China by the White House.

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The White House reportedly discouraged Intel from making more silicon wafers in China

Officials from the government have expressed concerns about possible security difficulties.

Intel has been working to improve its chip manufacturing supply chain, but it will be unable to do so in China. The chipmaker is being forced to take the hard road when it comes to generating more silicon wafers due to the trade war between China and the United States, which means the chip shortage will last until at least 2023.

Intel is currently working to expand its manufacturing capacity as part of its IDM 2.0 initiative. The company plans to become a strong competitor to chipmakers like TSMC and Samsung, and even wants to become the leader of process and packaging technology by 2025. Both are very ambitious goals that will require a lot of engineering talent and financial investments, but global politics could create some serious roadblocks along the way.

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According to a Bloomberg report, Intel has been trying to speed up chip manufacturing in China as a way to address the ongoing chip shortage. However, the White House is said to have “strongly discouraged” these plans, as they interfere with President Biden’s security policy and domestic production efforts.

The company wanted to manufacture silicon wafers at a facility in Chengdu, China, that could have become operational by the end of 2022. When the Biden Administration expressed worries about potential security issues, Intel agreed to put those plans on hold and focus on finding alternative solutions.

Intel relies on government subsidies and tax breaks to construct its manufacturing plants in the United States, so it must please regulators when making decisions like this. As a backup, the business is looking into the idea of constructing similar facilities in the United States and Europe.

In the short term, this may prolong the chip scarcity and hamper Intel’s production objectives, but the business appears willing to make those concessions in order to support the Biden Administration’s goal of manufacturing critical components in the United States.

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