The heads of Intel and Micron announced the importance of

The heads of Intel and Micron announced the importance of the Chinese market for the development of companies

The speeches by the CEOs of Intel and Micron Technology to members of the US Senate carried the expected rhetoric from their side, as the company leaders insisted on obtaining subsidies for those players in the semiconductor components market who set up production in the US. Senators also accused both companies of being too dependent on the Chinese market.

Image Source: Chip Somodevilla/Getty Images

Image source: Chip Somodevilla/Getty ImageS

According to Intel and Micron leaders, it was government subsidies that contributed to the active development of the semiconductor industry in China, South Korea and Taiwan. The region now produces up to 80% of the world’s semiconductor components. Interview with Intel CEO Patrick Gelsinger CNBC I have separately recalled my previous pictorial comparison, in which I compared oil reserves over the past five decades with the areas where semiconductor industries are located today. As he noted earlier, deposits have been naturally distributed across the planet, and the choice of locations for the production of chips remains within the power of man.

The head of Intel said while Talk in the US Senate that without government subsidies the company would move more slowly and produce on a smaller scale. Subsidies help to move faster. Intel is already having to sacrifice margins and free cash flow by pouring tens of billions of dollars into building new facilities in Arizona and Ohio, and it all has to be done against the backdrop of, Gelsinger says “Howling from Wall Street”, which are accompanied by a decline in the company’s share price. Intel expects to complete the Arizona company’s construction a quarter ahead of schedule, with work expected to begin as early as late 2024.

Micron CEO Sanjay Mehrotra told the Senate that Chinese authorities are allocating $100 billion to support the national semiconductor industry. US subsidies are helping local companies catch up with Chinese competitors and there is no time to waste if other countries are moving forward.

Florida Senator Rick Scott chided Intel for having a Chinese plant and suggested getting rid of it, but Gelsinger calmly replied that being in the world’s largest market was important to the company’s business. Meanwhile, the Chinese market is the most important source of income for Intel. Micron’s CEO added that revenue from product sales in China allows the company to invest more in research and development.


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Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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