U.S. Semiconductor Industry Association Urges Biden Administration to Avoid Further Restrictions on Chip Sales to China
July 17, 2023 – The Semiconductor Industry Association, a trade group based in the United States, has called on the Biden administration to refrain from imposing additional restrictions on chip sales to China. The statement comes as the CEOs of major U.S. semiconductor companies are scheduled to visit Washington this week to express their views on China policy.
The Biden administration is currently considering updates to the rules implemented in October that aimed to limit China’s chip industry. Additionally, a new executive order restricting certain outbound investments is also being considered.
Last week, it was reported that the CEOs of Intel Corp and Qualcomm Inc planned to meet with government officials to discuss their perspectives on China policy.
The statement from the Semiconductor Industry Association comes in response to China’s recent move to restrict the export of raw materials used in chip production, such as gallium and germanium. The trade group warns that further tightening of rules by U.S. officials could disrupt supply chains, create market uncertainty, and escalate retaliatory actions by China.
The trade group is urging the Biden administration to refrain from implementing additional restrictions until there has been more extensive engagement with industry experts to assess the impacts of current and potential restrictions. They emphasize the need for any restrictions to be narrowly defined, consistently applied, and fully coordinated with U.S. allies.
In response to the trade group’s concerns, a spokesperson for the U.S. National Security Council defended the rules, stating that they are designed to safeguard national security by ensuring that U.S. technologies are not exploited in ways that undermine the country.
The spokesperson highlighted the extensive public comment and coordination with allies, partners, industry, and other stakeholders that have been involved in the development of the rules.
Reporting by Stephen Nellis in San Francisco, Karen Freifeld in New York, and Andrea Shalal in Washington. Editing by Nick Zieminski.
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