Restrictions against China would affect US technology itself

by time news

2023-07-21 22:15:14

The Semiconductor Industry Association of America (SIA) has warned the White House to “refrain from applying further restrictions (on China) until it engages more broadly with the industry and with experts to assess the impact of current restrictions.”

The request came amid Washington’s harassment of Beijing to hinder, through restrictions on the sale of chips to the Asian country, its ability to produce semiconductors and slow down its development in the area of ​​artificial intelligence, on the assumption that this would facilitate Chinese military superiority, according to the White House. However, these measures could affect the US industry itself.

The matter was addressed during a meeting of executives of the largest manufacturers of integrated circuits in the US and senior officials of the Joe Biden administration, with the aim of discussing the new restrictive measures that they are considering imposing on chip exports to China.

Among them, it is expected that, through an upcoming executive order, US investment in the advanced manufacturing of Chinese chips, among other technologies, will be restricted.

Calling for no more restrictive measures to be applied to Beijing, the SIA argued that such restrictions, which it characterized as ambiguous and one-sided, would diminish the very “competitiveness of the US semiconductor industry.” at the same time that they could “disrupt supply chains”, and cause “uncertainty” in the market and “retaliation” by the Chinese authorities.

According to SIA data, China last year bought semiconductors for an amount of 180 billion dollars, representing a third of global sales, which amounted to 555.9 billion dollars.

Observers also noted that the SIA’s claim comes after Beijing, in response to US measures, restricted exports of gallium and germanium, two very important materials in the manufacture of semiconductors.

A source familiar with the matter cited by Reuters revealed that executives from Intel, Nvidia and Qualcomm were present at the meeting, as well as the Secretary of Commerce, Gina Raimondo; the director of the National Economic Council, Lael Brainard, and the director of the National Security Council, Jake Sullivan.

State Department spokesman Matthew Miller confirmed that Secretary Anthony Blinken also participated in the talks and, according to the spokesperson, Blinken shared his point of view “on the industry.” [de los semiconductores] and supply chain issues” and gave his views on trade with China.

With information from Russia Today

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