President Biden's administration banned Intel from ramping up chip production in China

Bloomberg reported that the U.S. government persuaded Intel not to build new plants in China or increase chip production in the Middle Kingdom. That was the processor giant's way of solving the problem of a global chip shortage, but President Biden's administration is worried about the country's national security.

Intel proposed to start production of semiconductor wafers used in the production of processors, which was to be carried out at the existing factory, as well as at a new plant in the Chinese city of Chengdu. In this way, Intel sought to alleviate the global shortage of semiconductor components. At the same time, the company sought support to expand production and development in the U.S. itself.

Intel submitted these plans to the White House several weeks ago. Now it has emerged that the administration of U.S. President Joe Biden is strongly opposed to such actions on national security grounds. Bloomberg adds that the current administration of the U.S. president is trying to move production of key components from other countries to the United States, which is fully applicable to China. So Intel's initiative was not approved, which will certainly lead to even greater shortages of semiconductor chips.

Source: bloomberg