Inside China Business CHIPS Act update: Intel runs out of time and money, announces layoffs in US to double down on China
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As Intel and other US chipmakers were claiming billions of dollars in incentives under the CHIPS Act, they were quietly building separate Venture Capital arms to invest billions of dollars into hundreds of Chinese startups. These partnerships were in the most cutting-edge fields, including Artificial Intelligence, Semiconductors, Edge Computing, Virtual Reality, and Electric Vehicles.
What’s more, investments by Intel’s VC arms were in partnership with local Chinese governments.
The US Treasury department is urgently issuing new regulations and guidance to ban US companies from these practices, while also struggling to convince companies in friendly countries to forego billions of dollars in sales and profits in the China market, by far the world’s largest.
Resources and links:
Techcrunch, Intel to lay off 15,000 employees
New York Times, U.S. Moves Ahead With Plan to Restrict Chinese Technology Investments
’Tough Day For All of Us:’ Intel CEO Announces Layoffs Affecting 15,000 People
Intel’s decision to slash workforce by 15% could make deep cuts in Oregon
Statista, Growth of the world’s largest consumer markets
Graphic, The Global Distribution of STEM Graduates: Which Countries Lead the Way?
Japan ‘Not Planning’ to Widen China Chip Curbs Despite US Push
Bloomberg, ASML’s China Sales Surge Highlights Risk of Tighter US Curbs
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