According to foreign media reports, US President Trump recently issued a serious criticism of Lip-Bu Tan, the new executive director of the US chip manufacturer Intel, requiring him to immediately resign due to close ties with Chinese companies in t...
According to foreign media reports, US President Trump recently issued a serious criticism of Lip-Bu Tan, the new executive director of the US chip manufacturer Intel, requiring him to immediately resign due to close ties with Chinese companies in the past. This not only adds to the dilemma of this chip manufacturing industry, but also makes its construction case worth billions of dollars in Ohio more uncertain. Originally, the construction project was originally highly expected by Ohio President Mike DeWine and senior Republicans, hoping to create a manufacturing industry glory and transform Ohio into a Silicon Heartland.
British Financial Times Reporting, Intel has received approximately US$1.5 billion in federal funding commitments in recent years, as well as the Ohio $2 billion award plan. However, the progress has been severely lagging, and these factories in Intel will not be able to operate in at least 2030. Despite this, an Intel spokesperson said it is continuing to work on completing the project and slowing down the construction speed to meet customer needs. Ohio State President's News Secretary Dan Tierney also said the state's president remains happy, saying Intel has invested $7 billion, far exceeding the state's award. The award plan and the opportunity to work created by the end of 2028 will not be able to recover funds as early as 2029.
This challenge not only highlights the risks that federal and state governments support Intel to bear, but also informs the Trump administration of trying to move semiconductor production back to the United States from Asia. More than 90% of the world's most advanced chips are produced in Taiwan, making returning to the United States production very important to the safety of the United States.
Chen Liwu took over as Intel's executive director in March, and he was once known as the savior of the hard-working American chip manufacturer. However, last Thursday, Trump asked Chen Liwu to resign on the grounds that he had close past ties with Chinese companies. Ohio Republican Party member Bernie Moreno said on social media that Chen Liwu had in-depth ties with the Chinese Communist Party and called on him to immediately resign and demanded a survey on the Ohio crystal factory construction project.
The allegations originated from Yihua Computer, which Chen Liwu served as executive director, admitted on July 28 that it would sell US export control technology to Chinese entities. Although the Justice Department's conviction agreement did not name Chen Liwu himself, Arkansas Republican Party member Tom Cotton has sent a letter to the chairman of the Intel Board of Directors, questioning Chen Liwu's understanding of illegal activities. Ohio State President Mike DeWine said he was worried about any allegations involving the Chinese Communist Party and harming the interests of the country, but would not prompt a sentence and needed more factual evidence. Jon Husted, a member of the Ohio Republican Party, emphasized that the fact has not changed the principle that American companies need to make chips in the United States. The production of the world's most advanced high-tech chips is not only an economic policy, but also a national security urgent task.
However, Democratic Party member Bill DeMora believes that Ohio Republicans are using Trump's attack on Chen Liwu to shift the focus, concealing their public funds into a matter of shutting down plans and spending money on work in a matter of virtual work. Bill DeMora further criticized that the Republican Party had made a big publicity and show of the Intel Corporation's plan, but now it is using the excuse of the executive's relationship with China. Therefore, the circular plant is predicted to never make a chip.
Intel challenged more than this, building a wafer factory is extremely expensive and complex, and it has been difficult to find enough customers to maintain operation, allowing it to lift its previous executive position in December after its wafer foundry department of $1.88 billion in 2024, Intel lifted its former executive position and laid off 15,000 employees. Moreover, other strategies are currently being considered, including the possible sale of its manufacturing business to NTD.
This highlights the differences in US semiconductor industry strategies. The Biden administration passed the CHIPS Act, supported by the two parties in 2022, aims to encourage semiconductor companies to build facilities in the United States through billions of dollars in funding. Intel is the only advanced logical chip manufacturer owned by the United States and has obtained a $7.9 billion U.S. construction factory supplement (about $2 billion of which has been paid). However, Trump criticized this supplemental method, believing tax levies are a more effective tool to bring manufacturing back to the United States, and threatened last week that it would charge 100% tax levies on many imported chips. Therefore, the problem faced by Intel Chen Liwu will add another obstacle to the efforts to bring back the United States to advanced semiconductor manufacturing, and will also be a key point in the political struggle of the US government.
