CCP Accuses US Of “Building Trade Barricades” By Not Allowing Intel To Produce Semi Components In China

CCP Accuses US Of “Building Trade Barricades” By Not Allowing Intel To Produce Semi Components In China

It was just hours ago we wrote how the White House had rejected a plan from Intel to produce more semiconductor components in China. 

Now, China is weighing in on the issue.

Chinese Foreign Ministry spokesman Zhao Lijian said at a press briefing on Monday in Beijing that the U.S. is “stretching the concept of national security” by preventing Intel’s plans. Lijian said that the U.S. is using national security as a means to “build up trade barricades”, Bloomberg reported Monday morning. 

Lijian also accused the Biden administration of forcing Samsung and Taiwan Semiconductor to hand over “sensitive information” related to their supply chains.

Because, as we all know, the CCP always stays out of the plans of large China-based tech conglomerates. 

Lijian then accused Biden’s actions of harming the supply chain for the U.S. and other countries, Bloomberg reported.

The report says that he suggested the U.S. “abandon the zero-sum game mindset, uphold a fair and nondiscriminatory business environment, and contribute to the building of an open world economy with concrete actions”.

Recall, we wrote just hours ago that Intel had proposed “using a factory in Chengdu, China, to manufacture silicon wafers,”. It could have been online by 2022, but the White House, “strongly discouraged” the move. Intel likely had to listen since the company is seeking government support in helping expand its capacity for manufacturing semis in the U.S.

Intel told Bloomberg it was now looking at “other solutions that will also help us meet high demand for the semiconductors essential to innovation and the economy.”

The company continued: “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. 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.”

Days prior to this report, we wrote how U.S. firms were splurging on Chinese semi deals, drawing scrutiny from the White House.

U.S. venture capital firms have been “ramping up investments” in Chinese semiconductor companies despite the obvious security conflicts, a report from the Wall Street Journal said. Cumulatively, U.S. firms have helped raise “billions” for Chinese chip startups, we noted. 

There has been more than 58 deals in China’s semiconductor industry from 2017 to 2020, we wrote. Among the “active investors” was Intel, who had invested in a Chinese company called Primarius Technologies Co., which makes chip-design tools that the U.S. currently holds the lead in making. 

Intel told the WSJ last week that its China investments “are less than 10% of the deals in a global portfolio designed to support its business and generate return”.

VC firms Sequoia Capital, Lightspeed Venture Partners, Matrix Partners and Redpoint Ventures have also made “at least 67 investments” in Chinese chip companies since the beginning of 2020, the report said. Sequoia and Redpoint said their deals have been done “independent” of their U.S. offices in Silicon Valley. 

The Journal wrote that “Sequoia Capital’s China unit has made at least 40 investments in Chinese chip-sector companies since 2020”. 

We noted last week that the massive tranche of deals had Washington alarmed, with national security adviser Jake Sullivan claiming this summer that the Biden administration is “looking at the impact of outbound U.S. investment flows that could circumvent the spirit of export controls or otherwise enhance the technological capacity of our competitors in ways that harm our national security.”

Tyler Durden
Mon, 11/15/2021 – 15:29

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