Intel continues to build two semiconductor production facilities in the United States as the U.S. has increased restrictions on its exports of certain related products to China.

In 2022, Intel closed a transaction with Brookfield Asset Management that resulted in the formation of Arizona Fab LLC (Arizona Fab), a VIE of which Intel and Brookfield own 51% and 49%, respectively. 

Generally, contributions will be made to and distributions will be received from Arizona Fab based on the proportional ownership of both parties. 

In turn, Intel will be the sole operator and majority owner of two new chip fabs to be built by Arizona Fab, and will have the right to purchase 100% of the related fab production. 

Intel has an unacknowledged commitment to fund its respective share of the total Arizona Fab construction costs of $29 billion.

Intel

In October 2022, the Commerce Department issued China-specific controls on design software for advanced logic chips and semiconductor equipment, and on services provided by U.S. persons to produce memory chips and advanced logic. 

The Commerce Department also restricted exports to China of some chips with artificial intelligence (AI) and supercomputing applications. 

In response, refers a U.S. congressional analysis, U.S. technology companies Nvidia, AMD and Intel said they would manufacture chips for China at a level just below the threshold for controls. 

In October 2023, the Commerce Department issued interim final rules that expand controls for some chips that had fallen below the 2022 controls threshold, subject additional equipment to controls, and expand licensing requirements to apply not only to the PRC, but also to 21 other countries subject to a U.S. arms embargo. 

The same analysis indicates that the rules create licensing exemptions for «low performance» and consumer chips, and require export notification of (but do not restrict) some gaming chips and chips that fall just below the new threshold.