That's an interesting point, I think it comes down to nobody knowing what contractors in their extended supply chain do.
This also moves Intel's problem to their first shareholder letter. Basically they should have never said it if it didn't apply to them. Then they chose to apologize to maintain standing in China for who knows what reason.
Whats clear to me is that they realize it is basically inconsequential in the US and their other markets, while it is consequential in the China market. It's easy calculus. Sure some people want it to be consequential but nothing is going to happen, a few patriotic fellows are going to put them on the same mental list they have Lebron James on and you'll just hear about it at a party or in a bar a few times. That's the definition of inconsequential to me.
You need to factor in time horizons. Things can be inconsequential for a while and then become very consequential.
Yes, in the short term, there are consequences in China for Intel in terms of speaking out against slave concentration camps. Medium and long term, CCP will champion a national chip that will replace Intel. No amount of CCP praising or glossing over slave concentration camps will prevent this outcome for Intel.
So choosing to bend the knee for CCP will not net a gain in a longer time horizon. And with the rise of ARM, Intel is no longer the only chip on the block.
The Intel leadership may think things are inconsequential outside of China. But, this might push them to not consider alternative supply chains. With increasing trade wars, and the CCP looking to be very aggressive with trade policies as a foreign policy instrument, it is probably a good idea to divest from China supply chains.
Yet, Intel seems to really value their China supply chain. So it is reasonable to expect them to face the adverse consequences in the future. This can be very swift just like the sidelining of Jack Ma and AliBaba as well other Chinese tech giants.
In other words, just because you do not see the consequences now, it does not mean that there will not be heavy consequences later. You can have some basic human empathy for Uyghurs in slave concentration camps. Or you can evaluate the competence of Intel leadership in a cold manner. Either way, things seem to point to a sell order for Intel stock if you trade.
This also moves Intel's problem to their first shareholder letter. Basically they should have never said it if it didn't apply to them. Then they chose to apologize to maintain standing in China for who knows what reason.
Whats clear to me is that they realize it is basically inconsequential in the US and their other markets, while it is consequential in the China market. It's easy calculus. Sure some people want it to be consequential but nothing is going to happen, a few patriotic fellows are going to put them on the same mental list they have Lebron James on and you'll just hear about it at a party or in a bar a few times. That's the definition of inconsequential to me.