Big Tech Lobby Congress to weaken ‘safeguards’ against Chinese companies: REPORT

Semiconductor maker Intel has lobbied lawmakers to water down a provision in an upcoming subsidy bill that would limit potential future operations in China, according to Politico.

Intel and the Semiconductor Industry Association have set their sights on certain “safeguards” in the CHIPS Act, a bill that provides billions in subsidies to the semiconductor industry, which prevent companies that receive funding from the bill to increase advanced semiconductor development operations in China, Politico reported. Chipmakers want the definition of what counts as an “advanced” microchip to change as technology increases, as current legislation could ban the production of “advanced” semiconductor technology in China, and defines “advanced” as today’s tip, according to Politics.

If Intel had its way, chipmakers would be able to make semiconductors a step closer to cutting-edge semiconductor technology in China for the foreseeable future.

Intel in November 2021 abandoned plans to take over a semiconductor plant in Chengdu, China, according to Bloomberg, but in March 2022 the company announced plans to invest $2.5 billion in a manufacturing facility. platelets in Liaoning Province, northeast China. China is Intel’s fastest growing major market, Intel Chairman and CEO Paul Otellini said in a press release.

“Such complex and important legislation requires input from all stakeholders. Intel and many companies in our industry have come together with our trade association to provide insight to policymakers to ensure we have the best legislation possible and don’t inadvertently undermine the global competitiveness of companies that receive CHIPS funds. an Intel spokesperson told the Daily Caller News Foundation.

Intel has already received attention for acquiescing to the Chinese Communist Party’s demands. In December 2021, the tech giant apologized to its Chinese business partners and customers after telling its suppliers to avoid sourcing from China’s Xinjiang region due to human rights concerns, then quietly and retroactively deleted all mentions of Xinjiang from an earlier version of its letter to suppliers. . (RELATED: Craters China’s economy as severe lockdowns continue)

The CHIPS Act aims to make the United States more competitive with China in semiconductor production, according to Reuters, and includes $52 billion in subsidies and an investment tax credit to boost American manufacturing.

White House press secretary Karine Jean-Pierre expressed her support for the safeguards during a press briefing on Monday.

The Semiconductor Industry Association did not immediately respond to the DCNF’s call for comments.

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