By Jenny Leonard and Ian King
<\/strong>
The Biden administration<\/a> spurned a plan by Intel Corp.<\/a> to increase production in China over security concerns, dealing a setback to an idea pitched as a fix for U.S. chip shortages, according to people familiar with the deliberations.

Intel<\/a>, the world’s largest chipmaker, has proposed using a factory in Chengdu, China, to manufacture silicon wafers, said the people, who asked not to be identified because the discussions were private. That production could have been online by the end of 2022, helping ease a global supply<\/a> crunch. But at the same time, it’s been seeking federal assistance to ramp up research and production in the U.S.

When presented with the plan in recent weeks, Biden administration officials strongly discouraged the move, the people said.

The situation underscores the challenges of the chip shortage, which has hobbled the tech and auto industries, cost companies billions in lost revenue and forced plants to furlough workers. The administration is scrambling to address constraints, but it’s also trying to bring production of vital components back to the U.S. -- a goal Intel’s China plan didn’t serve.

In a statement, Intel said it remains open to “other solutions that will also help us meet high demand for the semiconductors essential to innovation and the economy.”

“Intel and the Biden administration share a goal to address the ongoing industrywide shortage of microchips, and we have explored a number of approaches with the
U.S. government<\/a>,” the company said. “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 wafer fabrication plants in the U.S. and Europe.”

The episode comes as the
White House<\/a> is debating whether to restrict certain strategic investments into China. National Security Adviser Jake Sullivan has said the administration is considering an outbound investment screening mechanism and is working with allies on what it could look like. President Joe Biden also is set to meet virtually with Chinese President Xi Jinping on Monday.

A representative for the White House declined to comment on specific transactions or investments, but said the administration is “very focused on preventing China from using U.S. technologies, know-how and investment to develop state-of-the-art capabilities,” which could contribute to human rights abuses or activities that threaten U.S. national security.

Like other chip companies, Intel is eagerly waiting for Congress to pass $52 billion in funding for domestic research and manufacturing. That proposal, called the CHIPS Act, has been lingering in the House for months. The president and Commerce Secretary Gina Raimondo have been pitching the measure as a way to compete with China -- as well as preventing supply crunches in the longer term.

Following deliberations with the Biden team, Intel has no plans to add the production in China at the moment, a person familiar with the decision said. Still, such scenarios could arise again, and the administration may need to decide what rules come attached to the grant money.

Some Republican lawmakers have said that the money shouldn’t come without strings attached. They’ve pushed for guardrails to prevent companies from taking the grants and then still increasing their presence in China.

The purpose of the CHIPS bill is to “ensure less dependence on vulnerable supply chains, including with respect to semiconductors,” according to the White House statement. When asked about potential guardrails in the implementation of the bill, the representative said Congress hasn’t yet appropriated the funding.

At the same time, shortages have become a bigger political issue. Carmakers are losing more than $200 billion in revenue because of the lack of chips, and workers at idle plants have lobbied politicians to do something about it. Even giant companies with fine-tuned supply chains aren’t immune. Apple Inc. expects to miss out on more than $6 billion of sales this quarter because it can’t get enough components.

Intel Chief Executive Officer Pat Gelsinger, meanwhile, is trying to cope with the heightened level of public and governmental scrutiny surrounding the chip industry. The $400 billion business has become a key battleground in the increasing rivalry between China and the U.S., forcing companies operating in the Asian nation to navigate more obstacles.

The chip industry has a complicated relationship with China, one that became much more difficult during the Trump administration’s trade war.

China is the biggest consumer of semiconductors for local use, and it serves as the assembly center for much of the world’s electronics. To help with logistics and to keep Beijing happy, chipmakers -- including Intel -- have located plants there. But they face longstanding U.S. government restrictions that prevent them from exporting cutting-edge semiconductors to the country.

Intel also is trying to take on the world’s biggest contract manufacturers of semiconductors, increasing its production needs -- and its potential reliance on China. To challenge the leaders in that industry, Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co., Intel needs to be able to support Chinese customers or lose out on a huge chunk of the market.

Intel’s plants have previously only manufactured chips of its own designs, mainly the processors used by the personal-computer industry. But it faces mounting competition from products made by TSMC and Samsung, so Gelsinger’s strategy is to challenge them at their own game.

Intel is already opening two new plants near an existing site in Arizona to help with these efforts. The company has also said it will be building in Europe.

Gelsinger has argued that relying too much on outsourced production in Asia is a supply chain risk. He’s lobbied for public money around the world to support spreading chipmaking capabilities to different areas. But TSMC and Samsung aren’t standing still themselves: They’re expanding in new areas too, including by adding new plants in the U.S.
<\/body>","next_sibling":[{"msid":87678927,"title":"Telecom Diary: Race to 5G but where is the skilled workforce?","entity_type":"ARTICLE","link":"\/news\/telecom-diary-race-to-5g-but-where-is-the-skilled-workforce\/87678927","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[{"msid":"87685879","title":"White House","entity_type":"IMAGES","seopath":"news\/international\/business\/white-house-spurns-intel-plan-to-boost-chip-production-in-china\/white-house","category_name":"White House spurns Intel plan to boost chip production in China","synopsis":"The episode comes as the White House is debating whether to restrict certain strategic investments into China. ","thumb":"https:\/\/etimg.etb2bimg.com\/thumb\/img-size-523323\/87685879.cms?width=150&height=112","link":"\/image\/international\/business\/white-house-spurns-intel-plan-to-boost-chip-production-in-china\/white-house\/87685879"}],"msid":87695683,"entity_type":"ARTICLE","title":"White House spurns Intel plan to boost chip production in China","synopsis":"The situation underscores the challenges of the chip shortage, which has hobbled the tech and auto industries, cost companies billions in lost revenue and forced plants to furlough workers. The administration is scrambling to address constraints, but it\u2019s also trying to bring production of vital components back to the U.S. -- a goal Intel\u2019s China plan didn\u2019t serve.","titleseo":"telecomnews\/white-house-spurns-intel-plan-to-boost-chip-production-in-china","status":"ACTIVE","authors":[],"analytics":{"comments":0,"views":332,"shares":0,"engagementtimems":1373000},"Alttitle":{"minfo":""},"artag":"Bloomberg","artdate":"2021-11-14 11:47:44","lastupd":"2021-11-14 11:49:08","breadcrumbTags":["Intel","Biden administration","Intel Corp.","White House","Global Supply","U.S. Government","Policy","International","tech news","Intel processors"],"secinfo":{"seolocation":"telecomnews\/white-house-spurns-intel-plan-to-boost-chip-production-in-china"}}" data-authors="[" "]" data-category-name="" data-category_id="" data-date="2021-11-14" data-index="article_1">

白宫拒绝英特尔计划在中国促进芯片生产

局势凸显了芯片短缺的挑战,阻碍了科技和汽车行业,造成公司损失数十亿的收入和植物被迫休假的工人。政府正在努力解决约束,但它也试图把至关重要的组件的生产带回美国,英特尔中国计划没有一个目标服务。

  • 2021年11月14日更新,今天11点49分在坚持
阅读: 100年行业专业人士
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珍妮伦纳德和伊恩·王

拜登管理拒绝的计划英特尔(intc . o:行情)。增加在中国的产量超过安全问题,处理一次挫折一个想法最初是作为美国修复芯片短缺,据知情人士透露,审议。

英特尔,世界上最大的芯片制造商提出了使用一个工厂在成都,中国制造硅晶圆,人们说,他不愿透露姓名,因为是私人的讨论。生产可以一直在线在2022年底,帮助缓解全球供应危机。但与此同时,寻求联邦援助加强研究和生产在美国

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当面对这个计划在最近几周,拜登,政府官员强烈阻止。

局势凸显了芯片短缺的挑战,阻碍了科技和汽车行业,造成公司损失数十亿的收入和植物被迫休假的工人。政府正在努力解决约束,但它也试图把至关重要的组件的生产带回美国,英特尔中国计划没有一个目标服务。

英特尔公司在一份声明中表示,它仍然是开放的“其他解决方案,还将帮助我们满足高需求的半导体基本创新和经济。”

“英特尔和拜登政府分享一个目标地址的整个行业缺少芯片,我们探索的方法美国政府,”该公司表示。“我们的重点是重要的持续扩大我们现有的半导体制造业务和我们的计划投资数百亿美元的美国和欧洲的晶圆制造厂”。

这段插曲之际白宫正在讨论是否要限制某些战略投资进入中国。国家安全顾问杰克沙利文表示,政府正在考虑对外投资筛选机制和正与盟友可能会是什么样子。总统拜登还将会见中国国家主席习近平几乎周一。

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白宫的发言人拒绝评论具体交易或投资,但表示政府“非常关注阻止中国使用美国技术,技术和投资开发最先进的功能,“这可能会导致侵犯人权或威胁美国国家安全的活动。

像其他的芯片公司,英特尔正在急切地等待国会通过520亿美元的资金。为国内研究和制造。这提议,称为芯片,数月来一直挥之不去的房子里。总统和商务部长吉娜Raimondo投球了测量作为一种与中国竞争,以及防止长期供应紧缩。

与拜登团队讨论后,英特尔没有计划增加在中国生产,决定一位知情人士说。不过,这样的场景可能再次出现,政府可能需要决定哪些规则附加到资金。

一些共和党议员说,这笔钱不应该没有附加条件。他们推动护栏防止公司的拨款,然后还增加了他们在中国的业务。

芯片法案的目的是“确保少依赖脆弱的供应链,包括对半导体,”据白宫声明。当被问及潜在的护栏在法案的实施,美国国会代表说还没有拨款资助。

与此同时,短缺已经成为一个更大的政治问题。汽车制造商正在失去超过2000亿美元的收入,因为缺乏芯片,在闲置工厂和工人游说政客们做点什么。甚至巨头公司调整供应链不免疫。苹果公司(Apple inc .)预计将错过本季度的销售额超过60亿美元,因为它不能获得足够的组件。

与此同时,英特尔首席执行官Pat Gelsinger试图应付周围的提高程度的公共和政府审查芯片行业。4000亿美元的业务已成为一个日益竞争的主战场在中国和美国之间在亚洲国家,迫使公司浏览更多的障碍。

芯片行业有一个复杂的与中国的关系,一个在特朗普管理变得更加困难的贸易战争。

中国是最大的半导体为当地消费者使用,它是组装中心世界的电子产品。协助物流和北京保持快乐,芯片制造商——包括英特尔位于植物。但他们面临着长期以来美国政府限制,阻止他们向中国出口尖端半导体。

英特尔还试图在世界上最大的合同制造商的半导体,增加其生产需要,其潜在的对中国的依赖。挑战行业的领导者,台湾半导体制造公司和三星电子有限公司,英特尔需要能够支持中国客户或失去了大量的市场份额。

英特尔的工厂以前只生产自己的芯片设计,主要使用的处理器的个人电脑行业。但它也面临越来越多的竞争产品由台积电和三星,所以基辛格的战略挑战他们自己的游戏。

英特尔已经打开两个新厂附近的一个现有的网站在亚利桑那州协助这些努力。该公司还表示,它将在欧洲建筑。

基辛格认为,过多依赖外包生产在亚洲是一个供应链的风险。他游说世界各地的公共资金支持芯片功能不同领域蔓延。但台积电和三星不是静止的自己:他们在新的领域扩张,包括通过添加新的植物在美国
  • 发布于2021年11月14日上午11点坚持
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By Jenny Leonard and Ian King
<\/strong>
The Biden administration<\/a> spurned a plan by Intel Corp.<\/a> to increase production in China over security concerns, dealing a setback to an idea pitched as a fix for U.S. chip shortages, according to people familiar with the deliberations.

Intel<\/a>, the world’s largest chipmaker, has proposed using a factory in Chengdu, China, to manufacture silicon wafers, said the people, who asked not to be identified because the discussions were private. That production could have been online by the end of 2022, helping ease a global supply<\/a> crunch. But at the same time, it’s been seeking federal assistance to ramp up research and production in the U.S.

When presented with the plan in recent weeks, Biden administration officials strongly discouraged the move, the people said.

The situation underscores the challenges of the chip shortage, which has hobbled the tech and auto industries, cost companies billions in lost revenue and forced plants to furlough workers. The administration is scrambling to address constraints, but it’s also trying to bring production of vital components back to the U.S. -- a goal Intel’s China plan didn’t serve.

In a statement, Intel said it remains open to “other solutions that will also help us meet high demand for the semiconductors essential to innovation and the economy.”

“Intel and the Biden administration share a goal to address the ongoing industrywide shortage of microchips, and we have explored a number of approaches with the
U.S. government<\/a>,” the company said. “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 wafer fabrication plants in the U.S. and Europe.”

The episode comes as the
White House<\/a> is debating whether to restrict certain strategic investments into China. National Security Adviser Jake Sullivan has said the administration is considering an outbound investment screening mechanism and is working with allies on what it could look like. President Joe Biden also is set to meet virtually with Chinese President Xi Jinping on Monday.

A representative for the White House declined to comment on specific transactions or investments, but said the administration is “very focused on preventing China from using U.S. technologies, know-how and investment to develop state-of-the-art capabilities,” which could contribute to human rights abuses or activities that threaten U.S. national security.

Like other chip companies, Intel is eagerly waiting for Congress to pass $52 billion in funding for domestic research and manufacturing. That proposal, called the CHIPS Act, has been lingering in the House for months. The president and Commerce Secretary Gina Raimondo have been pitching the measure as a way to compete with China -- as well as preventing supply crunches in the longer term.

Following deliberations with the Biden team, Intel has no plans to add the production in China at the moment, a person familiar with the decision said. Still, such scenarios could arise again, and the administration may need to decide what rules come attached to the grant money.

Some Republican lawmakers have said that the money shouldn’t come without strings attached. They’ve pushed for guardrails to prevent companies from taking the grants and then still increasing their presence in China.

The purpose of the CHIPS bill is to “ensure less dependence on vulnerable supply chains, including with respect to semiconductors,” according to the White House statement. When asked about potential guardrails in the implementation of the bill, the representative said Congress hasn’t yet appropriated the funding.

At the same time, shortages have become a bigger political issue. Carmakers are losing more than $200 billion in revenue because of the lack of chips, and workers at idle plants have lobbied politicians to do something about it. Even giant companies with fine-tuned supply chains aren’t immune. Apple Inc. expects to miss out on more than $6 billion of sales this quarter because it can’t get enough components.

Intel Chief Executive Officer Pat Gelsinger, meanwhile, is trying to cope with the heightened level of public and governmental scrutiny surrounding the chip industry. The $400 billion business has become a key battleground in the increasing rivalry between China and the U.S., forcing companies operating in the Asian nation to navigate more obstacles.

The chip industry has a complicated relationship with China, one that became much more difficult during the Trump administration’s trade war.

China is the biggest consumer of semiconductors for local use, and it serves as the assembly center for much of the world’s electronics. To help with logistics and to keep Beijing happy, chipmakers -- including Intel -- have located plants there. But they face longstanding U.S. government restrictions that prevent them from exporting cutting-edge semiconductors to the country.

Intel also is trying to take on the world’s biggest contract manufacturers of semiconductors, increasing its production needs -- and its potential reliance on China. To challenge the leaders in that industry, Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co., Intel needs to be able to support Chinese customers or lose out on a huge chunk of the market.

Intel’s plants have previously only manufactured chips of its own designs, mainly the processors used by the personal-computer industry. But it faces mounting competition from products made by TSMC and Samsung, so Gelsinger’s strategy is to challenge them at their own game.

Intel is already opening two new plants near an existing site in Arizona to help with these efforts. The company has also said it will be building in Europe.

Gelsinger has argued that relying too much on outsourced production in Asia is a supply chain risk. He’s lobbied for public money around the world to support spreading chipmaking capabilities to different areas. But TSMC and Samsung aren’t standing still themselves: They’re expanding in new areas too, including by adding new plants in the U.S.
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