The US puts an end to any plans Intel may have to make more chips in China

Photograph taken inside an Intel semiconductor fabrication plant showing person in overalls (bunny suit) walking past lithographic equipment.
(Image credit: Intel)

Update 8/9/22: This story previously referenced Intel's fab in Dalian, China, which has since been sold to SK Hynix. Intel continues to operate assembly plants in Chengdu, China.


The US is banning some major US chipmaking companies from building "advanced technology facilities'' in China, the Biden administration has announced.

The ban will apply to any company that receives funding as a part of the CHIPS and Science Act, which was approved by the US Congress in August, and will last for 10 years. This act aims to increase domestic manufacturing of semiconductors with an influx of $50B across companies that apply. More than half of those funds are headed to cutting-edge facilities for today's top chips, though a smaller amount will help to ease demand for older chips and into research. 

Generally, it's about shifting what is currently a very Asia-focused manufacturing hub slightly more westward. Though banning any company from exploring options in China is certainly one other way of going about that.

One major company known to PC gamers everywhere and set to take a large sum of cash from the CHIPS Act is Intel. The company's CEO Pat Gelsinger was fiercely campaigning for the act and Intel is set to be one of the largest beneficiaries of it, considering the company's massive domestic and international chip manufacturing facilities.

Though only a handful of many locations owned and operated by Intel globally, Intel has assembly plants in Chengdu, China, and was very recently considering further significant expansion in the area—a move reportedly discouraged by the White House. Now it seems the White House may have found an even stronger way to keep Intel's investment out of China, with this recent proviso for receiving CHIPS Act funds effectively putting an end to that plan or anything like it.

Your next upgrade

(Image credit: Future)

Best CPU for gaming: The top chips from Intel and AMD
Best gaming motherboard: The right boards
Best graphics card: Your perfect pixel-pusher awaits
Best SSD for gaming: Get into the game ahead of the rest

Memory manufacturer Micron may also have to side-line any further plans in China if it hopes to net a lump sum from the US government. It runs an assembly and test facility in Xi'an China, first opened in 2007. Though the US government has specified that any facility building older chips can be operated in the area to serve the local region.

Both Intel and Micron have announced plans to expand their US-based operations, however, and Intel is also building and expanding in the EU.

This ban won't necessarily affect companies such as Nvidia or AMD directly, as they rely on third parties to build their chips for them. However, neither has managed to dodge the eye of the US government entirely: both has been told to stop sending high-end datacentre GPUs to China and Russia.

Jacob Ridley
Managing Editor, Hardware

Jacob earned his first byline writing for his own tech blog. From there, he graduated to professionally breaking things as hardware writer at PCGamesN, and would go on to run the team as hardware editor. He joined PC Gamer's top staff as senior hardware editor before becoming managing editor of the hardware team, and you'll now find him reporting on the latest developments in the technology and gaming industries and testing the newest PC components.

Read more
Nvidia headquarters
Nvidia CEO sets sights on making 'several hundred billion' dollars worth of electronics in the USA over the next four years, increasing the chance of your next GPU being made in America
TSMC
TSMC and Trump announce massive $100 billion investment in the US including 3 new fabs but it's reasonable to ponder whether it will actually happen
Nvidia headquarters
Nvidia denounces Biden administration's 'rigged' and 'misguided' new AI chip export restrictions
America to the rescue
US pressures Malaysia to stop banned AI chips potentially entering China by monitoring 'every shipment that comes to Malaysia when it involves Nvidia chips'
Bill Gates speaks onstage for a special conversation during "What’s Next? The Future With Bill Gates"at The Paris Theater on September 26, 2024 in New York City.
Bill Gates laments Pat Gelsinger's failure to save Intel: 'I was hoping for his sake, for the country's sake that he would be successful'
US President Donald Trump holds a signed executive order during a ceremony in the Oval Office of the White House in Washington, DC, US, on Monday, Feb. 3, 2025. Trump signed an executive action he said would direct officials to create a sovereign wealth fund for the US, following through on an idea he floated during the presidential campaign. Photographer: Chris Kleponis/CNP/Bloomberg via Getty Images
Trump flirts with 25% and 'substantially higher' tariffs on all computer chips
Latest in Processors
A chip being held up in an Intel fab
Intel is reportedly 'working to finalize commitments from Nvidia' as a foundry partner, suggesting gaming potential for the 18A node
AMD Strix Point APU chip, held in a hand, with the reflected light showing the various processing blocks in the chip die
AMD's next-gen 'Gorgon Point' APU outted and seemingly sticks with RDNA 3.5 graphics which is disappointing for handheld gaming PCs if accurate
Nvidia CEO Jensen Huang delivering pancakes and sausages to pre-GTC show hosts and guests, wearing an apron
'There might be a party. I wasn't invited,' says Jensen Huang of the rumoured TSMC proposal to join forces and run Intel's chip fabs
Nvidia Feynman GPU
While we despair of RTX 50-series supplies and wait on next-gen Rubin, Nvidia reveals its next-next GPU architecture will be known as Feynman and is due in 2028
Nvidia Vera CPU
Nvidia reveals Vera, a new CPU with 'custom' cores which could be very exciting for its upcoming premium PC processor
Machinery tools and equipment,Rolls of galvanized steel for production metal pipes and tubes for industrial ventilation systems in factory.
New super-thin '2D' metal sheets could enable ultra-low power chips and can you guess how they're made? Yup, by squishing stuff really hard
Latest in News
Two brightly colored stormtroopers dressed like Run-DMC stand in front of PAX Australia's WELCOME HOME banner.
Tickets for PAX Australia 2025 are on sale now
An Enshrouded player in a recreation of Erebor from The Lord of the Rings
Kings under the Mountain! 33 Enshrouded players spent 10,000 hours to recreate this iconic location from The Lord of the Rings
A mech awakens.
Mecha Break developer is considering unlocking all mechs following open beta feedback
Lara Croft Unified Art
Tomb Raider developer Crystal Dynamics lays off 17 employees 'to better align our current business needs and the studio's future success'
A long bendy arm stealing money from people in a subway car
'You're a very long arm. You steal things. It's a comedy game,' explains developer of comedy game where you steal things with a very long arm
The heroes are attacked by monsters
Pillars of Eternity is getting turn-based combat to mark its 10th anniversary, and that means PC Gamer editors will soon be arguing about combat mechanics again