It seems a strong cooperation between multinational chip manufacturer Intel and China is underway, especially after the recent words of China’s industry minister to Intel’s chief executive officer.
Today, Jin Zhuanglong, China’s industry minister, told Intel CEO Patrick Paul Gelsinger that China could provide a vast market for multinational companies, including the chip maker.
During a meeting in Beijing, Jin Zhuanglong told Gelsinger that China highly values the development of advanced manufacturing industry and is capable of providing satisfactory conditions for foreign investments.
China’s role for Intel ‘important,’ CEO Gelsinger says
Not only that, but Beijing has also asked the United States-based chipmaking giant to establish a base in the East Asian country to help keep the global industrial supply chain stable.
It is not just China’s industry minister who uttered a word to Intel, but also vice president Han Zheng, who told the Intel CEO that multinational companies must overcome various challenges and difficulties to promote better global cooperation.
Gelsinger was present at the Intel forum that happened in Beijing and also issued a statement, saying that the role of China in the company’s business goals is “incredibly important.”
During his visit to the Chinese capital for the sustainability summit, the Intel CEO said that China “is one of the world’s largest markets, and also one of Intel’s most important markets,” news from South China Morning Post said, citing media outlets in the country.
Amidst market ‘restrictions’
However, many have noticed that, despite these good words between China and Intel, it is a fact that the United States is trying to limit the sale of advanced chips and chipmaking equipment to China.
During that visit, Gelsinger also met with Chinese officials, including vice president Hang Zheng and commerce ministry Wang Wentao. The commerce ministry office said minister Wang Wentao and Gelsinger talked about the “security and stability of the global semiconductor industry chain.”
As of press time, Intel has no statement about Gelsinger’s word for China.
This visit of Gelsinger in China follows his trips from other chip CEOs, including Qualcomm’s Cristiano Amon and ASML Holding’s Peter Wennick, earlier this year.
China’s chip industry is facing new restrictions from the United States and its allies as the Joe Biden presidency attempts to preserve its technological edge in semiconductors.
Intel was a formidable supporter of the United States’ CHIPS and Science Act, which provided a whopping $52 billion in subsidies for semiconductor manufacturing in the North American country. Gelsinger also once argued that the United States’ support is necessary for its products, even suggesting that the company may transfer its productions to locations like Europe if the money was not approved.
Yet the CHIPS and Science Act, which was passed last August, has measures preventing recipients of U.S. money from expanding production in China.
In late March, the United States commerce department released draft rules that would prohibit the money recipes of the Act from expanding top-notch chipmaking in “countries of concern,” and these include China.
