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US semiconductor industry strongly opposes export restrictions to China

US semiconductor industry strongly opposes export restrictions to China

Posted July. 19, 2023 08:10,   

Updated July. 19, 2023 08:10


The U.S. semiconductor industry issued a statement on Monday (local time) urging the Biden administration to “refrain from additional semiconductor export regulations to China.” Following the administration's push to expand export regulations to artificial intelligence (AI) semiconductors this month, the industry is rebelling against it.

The U.S. Semiconductor Industry Association (SIA) issued a statement that day: "Repetition of overly broad, ambiguous, and unilateral regulations compromises the competitiveness of the U.S. semiconductor industry, disrupts supply chains, and risks continuing escalated retaliation from China.” It added, "We urge the administration to refrain from implementing further regulations until it can determine whether it has been fully coordinated with its allies."

After announcing export restrictions on advanced semiconductor equipment in October last year, the administration recently expanded export restrictions to low-end AI chips. In addition, it is reported that the U.S. government notified that it would suspend export approval licenses for Huawei that it had granted to Intel and Qualcomm.

SIA is the largest private entity related to semiconductors, with members such as Samsung Electronics, SK hynix, and Taiwan's TSMC, as well as U.S. semiconductor companies such as Intel, IBM, Qualcomm, and Nvidia. It is the first time that SIA has issued a statement against the Biden administration's semiconductor export regulations, and such opposition stems from concerns that enormous damage can be sustained should additional regulations effectively block exports to China, the world's largest semiconductor market.

Now that SIA has officially opposed the expansion of export restrictions to China, there are observations that global semiconductor companies will also voice their opinions more. The domestic industry, which has suffered damage from China's regulations but has been unable to raise its voice, also seems to be on its side.

As opposition from the semiconductor industry intensifies, it is expected to burden the Biden administration, which has waged a “chips war” with China using export regulations as a weapon. Some observers say that the Biden administration may delay additional export restrictions. The White House called the CEOs of the U.S. semiconductor industry, including Intel, Qualcomm, and Nvidia, to discuss China-related policies such as semiconductor regulations. The C-suite is reported to have conveyed its concerns about additional export restrictions at the White House meeting.

Do-Young Kwak now@donga.com