Intel Opens New Chinese AI Chip Center Despite Biden's Concerns And Potential Dangers To US Security

The United States and China are locked in an epic battle for artificial intelligence (AI) supremacy. While there's no way of knowing what the future holds, one thing is for sure: A surprise is around every corner.

The most recent bombshell is Intel Corp.'s decision to open an innovation hub in China to help local technology startups grow. This development is happening despite the Biden administration's efforts to prevent China from developing potentially harmful technologies.

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What's Known So Far

In a statement shared with The Register, Intel confirmed the inauguration of its new unit in Shenzhen, China, over the past weekend. The establishment's primary purpose is to concentrate on the advancement of AI, chip development and edge computing, among other technological fields.

The center will leverage Intel's preexisting technologies and products to perpetually foster application innovations within an open ecosystem. The focus will be on sectors such as AI, chip applications and edge computing to cater to the local market demand.

As reported by the South China Morning Post, the district government plans to use the collaboration to evolve the Intel Greater Bay Area Innovation Center into a global innovation hub. 

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In a parallel report, Now Shenzhen noted that around 60 Intel partners were present at the Innovation Center's inauguration. It further depicted the center as an innovation exchange platform, jointly established by the Nanshan District government and Intel. The day-to-day operations and management of the facility are overseen by Shenzhen Extreme Vision Technology.

What's Next?

Reports suggest that the United States and its European allies are growing concerned over China's intensified efforts to augment the production of semiconductors using mature process nodes.

Bloomberg highlights that the apprehension arises from China's potential attempt to assert dominance over the market for everyday semiconductors, especially those fabricated using 28nm process technology or older. The strategy would involve outcompeting rivals from other nations by saturating the market with inexpensive chips. Such a maneuver could lead to dependencies on China-centric supply chains, which could subsequently be manipulated to serve China's interests.

While both the EU and the U.S. have launched initiatives to bolster domestic semiconductor manufacturing, which reduces dependency on Asian suppliers, companies in these regions may be hesitant to make significant investments in facilities that would need to compete against heavily subsidized Chinese factories.

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