Semiconductor titan Intel (INTC) - Get Intel Corporation Report apologized to its Chinese partners Thursday, after receiving negative feedback to a letter asking suppliers to avoid utilizing products from Xinjiang.
That’s the province where the Chinese government is accused of persecuting religious minorities.
“Although our original intention was to ensure compliance with U.S. laws, this letter has caused many questions and concerns among our cherished Chinese partners, which we deeply regret,” the company said in a statement on Weibo, a Twitter-like service in China.
In the letter earlier this month to global suppliers, which was published on its web site, Intel said, “multiple governments have imposed restrictions on products sourced from the Xinjiang region. Therefore, Intel is required to ensure our supply chain does not use any labor or source goods or services from the Xinjiang region.”
China social media platforms lit up with anger about the letter, as did a nationalist, state-run newspaper.
The letter was published as the U.S. Senate passed a bill last week barring imports from Xinjiang because of China’s use of forced labor there. President Biden Joe Biden signed the bill last Thursday.
As for Intel stock, it recently traded at $51.38, up 0.81%. Morningstar analyst Abhinav Davuluri puts fair value at $65.
“Intel reported decent third-quarter results, though revenue came in modestly below management’s guidance due to shipping and supply constraints that impacted multiple segments,” he wrote in October.
“Management called for a 10% to 12% revenue annualized growth rate over the next four to five years, along with gross margin expansion sometime in the next few years.”