While Intel could fund the fab with non-U.S. funds, Intel officers would likely be facing federal charges.
Add to that every supplier of equipment (steppers, etc) isn't going to be willing to send their equipment to a fab in China that isn't licensed, because they don't want to piss off the US government either. (if they're in the US, they'll worry about being able to export to Taiwan, etc. If they're outside the US, they'll worry about being able to export to the US)

And also add that Intel products often go through US customs at least once if not more than once. And if the US decides to not allow Intel to import/export, or even force Intel to have a lengthier review of their imports/exports it will impact Intel's bottom line.


Export of technology is like exporting of weapons - it IS something the US government keeps an eye on.