Intel, the world’s largest chipmaker, has proposed using a factory in Chengdu, China, to manufacture silicon wafers, said the people, who asked not to be identified because the discussions were private. That production could have been online by the end of 2022, helping ease a global supply crunch. But at the same time, it’s been seeking federal assistance to ramp up research and production in the US. When presented with the plan in recent weeks, Biden administration officials strongly discouraged the move. “Intel and the Biden administration share a goal to address the ongoing industry-wide shortage of microchips, and we...