China invites Intel, AMD and others to set up overseas operations

After the damage to the Chinese telecommunications company Huawei Due to US sanctions, the Chinese government is making a game for manufacturing security by welcoming foreign semiconductor manufacturers abroad.

China’s Ministry of Commerce will set up a department dubbed the “cross-border semiconductor work committee”, which will oversee conversations with Intel, AMD, ASMLand others in an effort to convince companies to set up shop in the country, according to Nikkei Asia.

Launched in the first half of this year, the committee will also include the Ministry of Industry and Information Technology and laboratory staff from Tsinghua University. This committee will encourage companies from abroad to set up production facilities. According to Nikkei Asia, the organization to be established will work with local authorities and provide the necessary funds.

News of the Chinese government’s efforts to ensure production security amid US sanctions on its technology companies coincides with efforts by Intel and the US government to re-establish the US as a manufacturer. number 1 semiconductor in the world.

Intel has been busy with booting 20 billion dollar campus in Arizona and is preparing for a $20 billion campus in Ohio with the potential to expand to total 100 billion dollars construction Includes eight chip fabs in place. To complement this growth, US COMPETITION Act spend $52 billion on manufacturing and research funds — as well as an additional $45 billion to strengthen supply chains — and get one step closer to President Biden’s desk after it passed the House of Representatives earlier in the day. today.

Is considering trade war, it is not surprising that China tries to secure its manufacturing prowess. What is more interesting is that many companies will likely take up the Chinese offer. Of all Intel’s business in 2020, China accounted for more than a quarter at 26%. Similarly, AMD has many reasons to strengthen ties with China, according to Nikkei Asia.

“For many semiconductor companies, China is one of the biggest growth markets in terms of sales, so they can’t ignore the Chinese government’s wishes,” an executive told Reuters, speaking on condition of anonymity. Nikkei Asia.