China puts pressure on Intel as US sanctions loom, seeks Intel’s support to preserve global supply chain

Vice President of China Han Zheng said intel corporation (NASDAQ:INTC) CEO on Wednesday to put down roots in China to help preserve the resilience of the global industrial supply chain.

At a meeting in Beijing, Han told Intel CEO Patrick Paul Gelsinger that multinational companies must “overcome difficulties and challenges” to promote better global cooperation, Reuters reports.

The pandemic fueled geopolitical tensions between the US and China by tearing apart the vulnerable global supply chain and sparking a crisis of semiconductor chips for electronic devices and cars.

Also read: Taiwan Semiconductor founder highlights how US sanctions pose a double whammy in the form of rising costs and chip availability

The United States retaliated with an embargo on China, restricting the latter’s access to cutting-edge semiconductor technology to contain its growing dominance.

The US and other countries focused on improving domestic production and supply of semiconductor technology. In particular, the US Chip Act prohibited subsidy contenders like Intel and Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM) to stay away from China.

Chipmakers like Nvidia Corp (NASDAQ: NVDA) recently tweaked their flagship product into a legal version to export to China to serve their customers like Alibaba Group Holding Ltd (New York Stock Exchange: BABA).

The H800 mainly reduced the chip-to-chip data transfer rate to about half the speed of the flagship H100.

Price Action: INTC shares traded 0.87% lower at $32.07 in late check on Wednesday.

Photo by Body Stock and Dragon Claws via Shutterstock