U.S. semiconductor giant Intel Corp. apologized after setting off a social-media backlash with a letter asking suppliers to avoid sourcing from the Chinese region of Xinjiang, where the U.S. has alleged genocide.

Intel, headquartered in Santa Clara, California, reported 2020 profits of $23.7 billion on sales of $77.9 billion.

In a letter to global suppliers, dated this month and published in several languages on its website, Intel called on its business partners to steer clear of the remote northwestern region of China, noting that “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.”

Intel's request was “arrogant and vicious," said Global Times, a newspaper published by the ruling party.

“What we need to do is to make it increasingly expensive for companies to offend China so their losses outweigh their gains,” the newspaper said in an editorial.

Global Times called the move a “fresh warning siren to Intel and other foreign companies that seek to undermine China’s core interests while also trying to profit from the vast Chinese market”.

"So-called forced labor and other allegations on Xinjiang are completely lies concocted by anti-China forces,” said a foreign ministry spokesman, Zhao Lijian. He called on Intel to “respect facts and tell right from wrong.”

The letter caused “concerns among our cherished Chinese partners, which we deeply regret,” said an Intel statement.

“We apologize for the trouble caused to our respected Chinese customers, partners and the public,” the company said.

The Communist Party has spent billions of dollars to build a Chinese chip industry and reduce reliance on the United States, Taiwan and other suppliers. But its maufacturers are far from achieving the level of precision required for the most advanced chips from Intel and other global suppliers.

Image courtesy: Reuters