White House Rejects Intel’s Plans for Increased Chip Production

After proposing to establish silicon wafers in a Chinese plant, Intel was rebuffed by the US government following a request for federal aid to improve current production levels and conduct additional research within the United States.

The chipmaker had been seeking federal assistance from the United States to increase existing output and expand research activities in the United States, as well as to set something up and run by late 2022.

According to the press, the Biden administration has strongly discouraged the use of this Chinese factory and it appears that Intel will follow orders, but plans were discussed in private by unknown individuals who requested anonymity.

Not long after the White House revealed it was considering restricting Chinese investments, this occurred. In a statement, a representative for the government stated that while not directly connected, “the timing is no accident.

“It’s possible that this is related to the current national security concerns that have emerged since Chinese firms such as Huawei and Xiaomi were banned from trading within the United States.

Intel later said, “Other options that will also assist us in meeting the high demand for semiconductors required to drive economic growth and innovation.”

“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,” 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.”

With the silicon crunch predicted to continue until 2023 by some experts, we may have a tough time getting in-demand technology like PS5 consoles and Nvidia GeForce graphics cards for some time.

Who made the correct decision?

According to Simon Segars, CEO of Arm’s semiconductor design company, supply and demand are now “the most extreme” they’ve ever been, with the chip scarcity expected to last well past Christmas 2022.

“If you haven’t bought all your devices yet, you might be disappointed,” he said, speaking at Web Summit. “It has never been like this before.”

It might have been useful to reduce the existing market’s pressure, with firms racing for available chips to a degree that some customers may not be served until 2023.

This has a serious influence on everything from automobiles to smart home technology and is especially bad for high-demand items such as gaming consoles and PC hardware in the run-up to Christmas.

The US government has every right to be concerned about Chinese manufacturing, but the fact that there is still no solution to our problem pains us.

It appears unlikely that a quick answer will be discovered in time to help alleviate current production issues, therefore any domestic efforts would be ineffective without joint foreign collaboration.

We’ve been waiting for Taiwan’s PC market to take off since 2009, when Apple started manufacturing their Mac computers at the island.

Unfortunately, because presently around 92 percent of all computer chips are produced in Taiwan, no matter whether the US tries to increase production “in-house” or puts more security measures into place before allowing additional production rises, we’re stuck in limbo.