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China plans to set up a committee to cooperate with Intel and AMD

Nikkei Asia reports on the Chinese government's plans to create a specialized agency that will cooperate with local and foreign chip manufacturers such as Intel and AMD. The committee will oversee the creation of centers for the development of software, materials and equipment for production. Thus, the PRC authorities will try to create a supply chain for semiconductors bypassing US sanctions.

The organization will be established under the name "Cross-Border Working Committee on Semiconductors". Education will be established in the first half of 2022, according to the Nikkei. The Committee will be supervised by the Ministry of Commerce and the Ministry of Industry and Information Technology.

Nikkei notes that the organization should strengthen relations between Chinese and foreign companies. The Committee will build supply chains and ensure the security of processor technologies from the US, Japan and Europe.

Documents in the Nikkei's possession show that the Chinese government's interests include Intel, AMD, Germany's Infineon Technologies and the Netherlands' ASML. Some companies expressed interest in China's initiative, while Intel and ASML declined to comment.

In 2016, AMD and China formed a joint venture, Tianjin Haiguang Advanced Technology Investment Co. Ltd for the development of single-chip systems.

In the announced program, governments will also accept Semiconductor Manufacturing International Co., Advanced Micro-Fabrication Equipment Inc. China and Xiaomi. Other contributors include the Chinese Academy of Sciences, Peking University and Tsinghua University.

In 2015, the PRC announced the launch of the "Made in China 2025" strategy, which aims to achieve 70% self-sufficiency in technology by 2025. However, the consulting firm reports 16% in 2020, noting that China has overestimated its capabilities.

Currently, US authorities have banned the supply of software, equipment and materials to Chinese Huawei and SMIC. Also included in this list are Phytium and Sunway.

Last November, the administration of US President Joe Biden began to challenge Intel's intention to accelerate the production of semiconductors in China. US officials say the company's plans pose national security risks.

Last week, the Chinese government approved AMD's $35 billion deal to buy Xilinx. However, the authorities did so by imposing conditions on the manufacturer, which are fixed in the contract for a six-year period.

China plans to set up a committee to cooperate with Intel and AMD