Intel CEO Makes Second Visit to China This Year Despite Looming US Chip Curbs

BEIJING, July 14 (TiPost)— A U.S. semiconductor giant with half-century history showed it is seeking to maintain focus on China despite more potential tech curbs on the economy imposed by the Biden administration.

Credit：Visual China

Intel Corporation’s CEO Patrick Paul Gelsinger travelled to China’s southwestern province Sichuan earlier with week.  Huang Qiang, the governor of Sichuan provincial government, welcomed Gelsinger’s visit, and expressed his gratitude to Intel for its contribution to Sichuan’s development over the past 20 years since it built a facility in Chengdu, according to local newspaper Sichuan Daily. Huang stressed Sichuang’s advantage in attracting investments and creating opportunities. With solid industrial foundation, Sichuan has developed electronics and information as its top pillar industries, and grown together with well-known domestic and foreign companies such as Intel, Huang said.

The local government will seriously implement the understandings reached by the two heads of China and the United States, remain committed to opening up wider, and promote communication with Intel and other businesses on important economic issues, Huang told Gelsinger. The official told Gelsinger to maintain confidence in development in Sichuan, and expand investments and operation. He vowed that the local authorities would continue to develop a market-oriented, law-based, and international first-class business environment, provide quality and efficient services, and create conditions for Intel to improve its development.

Gelsinger appreciated Sichuan government’s strong support for a long-term stable operation of Intel’s unit in Chengdu, the capital of Sichuan province. He said he felt confident in future development of the province, and his company would further cooperation with local authorities to make greater contributions to local economic development.

Besides meeting with leaders of Sichuan government, Gelsinger also came to Intel’s Chengdu factory to celebrate its 20th anniversary with workers. The factory has developed into Intel’s largest chip packaging base in the world, and one of the packaging test centers. It now makes about half of Intel’s output of mobile processors.  

This is Gelsinger’s second visit to China this year. In his first trip in April, Gelsinger called China “one of the world’s largest markets” as well as “one of Intel’s most important markets”. The chief executive said his company is optimistic about the prospects of Chinese market and will continue increasing investment and deepening cooperation, during his meet with Chinese Vice President Han Zheng that month. Han noted China adheres to the basic state policy of reform and opening-up. He pledged that China will continue to provide better services to foreign companies, and share new development opportunities with companies of all countries.

Gelsinger’s second visit came as increasing signs about U.S. new export restrictions on China in the horizon.

The Biden administration is considering new curbs on the exports of artificial intelligence (AI) chips to China, including stopping the chip shipments made by U.S. companies to customers in China and other countries concerned without first obtaining a license, the Wall Street Journal reported late June. The U.S. Commerce Department could reportedly announce the move as soon as early July, affecting all the American chipmakers such as Nvidia, AMD and Micron Technology.

The United States and the Dutch are set to deliver a one-two punch to China this summer by further restricting sales of chipmaking equipment, Reuters reported late June. While the Netherlands announced new restrictions on exports of certain equipment from ASML and other companies based in the country soon after the report, the U.S. could reportedly introduce new curbs by late July to withhold even more Dutch-made equipments exported to Chinese chipmakers. 

Earlier this month, another Wall Street Journal report said the U.S. government is mulling a new rule that could require Amazon, Microsoft and other American cloud service providers to apply for government permission if they want to continue their services used for AI chips to Chinese customers, and the Department of Commerce could unveil the rule in the upcoming weeks. The rule was said to aim to close a significant loophole in U.S. chip export controls. Cloud services allow Chinese companies to gain computing capabilities even they didn’t import cutting-edge technologies from U.S., such as A100, a powerful AI chip made by Nvidia, according to the report.

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