At a press event, Barrett also appeared to take issue with Semiconductor Manufacturing International Corp.'s move to deploy 90-nm process technology within its leading-edge fabs in China.

The Intel CEO seemed to indicate that SMIC is in violation of U.S. export control laws, by deploying 90-nm technology in China. But in response to an article on Silicon Strategies late Thursday afternoon, a spokesman for Intel indicated that Barrett did not take issue with SMIC, but rather he had problems with the U.S. government and its restrictive export control policies for U.S. companies in China.

Late last month, Chinese silicon foundry provider SMIC disclosed that it has signed a deal to develop 90-nm process technologies with Texas Instruments Inc. SMIC (Shanghai) hopes to have 90-nm "pilot production" by the first quarter of 2005 (see Oct. 28 story).

The deal would signal the further erosion of a post Cold War-era pact -- known as the Wassenaar Arrangement -- set up to limit the dissemination of technology that could have potential military use.

Tools capable of processing 0.25-micron wafers had been the perceived limit under U.S. controls, but a number of chip-making startups, joint ventures, and major semiconductor manufacturers in China have announced plans for 0.18-micron and below processes.

Barrett expressed concern about U.S. export control policies in relation to SMIC's efforts to deploy 90-nm technology in China. "You have to say, 'What the hell is going on?' Barrett said. "[SMIC's efforts] blatantly goes against U.S. regulations."

In an interview with Silicon Strategies after the press event, the Intel executive cried foul about the unfair business practices in China. "If I wanted to build a 90-nm, 300-mm fab in China, the U.S. government would say, 'Absolutely not.' "

There appears to be a double standard in China. China's own chip makers can set up fabs with 90-nm technology. And U.S. chip-equipment makers have a rough time competing in China, due to unwieldy and outdated laws.

"U.S. export controls and regulations do not help U.S. companies compete in China relative to our competition," he said. "I don't like fighting with one hand tied behind my back."

There are rumors that Intel is looking at building a fab in China. The company has already built backend assembly plants in that nation.

The spokesman said Intel would not build a fab in China within the next five years. Asked if Intel has dismissed the idea of building fabs in China before then, the spokesman said: "Never say never."