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Intel and Texas Instruments face tough questions on China ties

September 10, 2024 | Homeland Security and Governmental Affairs: Senate Committee, Standing Committees - House & Senate, Congressional Hearings Compilation


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Intel and Texas Instruments face tough questions on China ties
In a recent government meeting, U.S. senators scrutinized the involvement of major semiconductor companies in China and their implications for national security, particularly in light of the ongoing conflict in Ukraine. Senator Marshall presented alarming data indicating that components from American companies were found in Russian weapons used against Ukraine, raising concerns about the supply chain's vulnerability to foreign adversaries, particularly China.

The discussion highlighted the complex relationship between U.S. semiconductor firms and China, with executives from Intel and Texas Instruments acknowledging the significant market presence in China. They emphasized compliance with U.S. export controls but faced tough questions about the ethical implications of continuing business in a country accused of human rights violations, including the use of forced labor against the Uyghur population.

Senator Hawley pressed Intel's representatives on their investments in Chinese artificial intelligence and semiconductor startups, questioning the rationale behind such investments while receiving U.S. government funding aimed at bolstering domestic semiconductor manufacturing. The executives defended their actions by stating that profits from China are reinvested in the U.S. to enhance technological capabilities.

The meeting also addressed the apparent failure of sanctions, with reports indicating substantial imports of Intel components into Russia despite the company's claims of halting sales. Executives were urged to strengthen compliance measures to prevent diversion of their products to hostile entities.

As the session concluded, the senators expressed frustration over the perceived lack of accountability and urgency in addressing these critical issues, emphasizing the need for a more robust response to protect American interests and uphold ethical standards in global supply chains.

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