semiconductors 26 October 2023

Semiconductor lobby warns against ‘overly broad’ US export controls

The US Semiconductor Industry Association (‘SIA’) said it was studying the impact of the recently updated US export restrictions on advanced computing semiconductors and semiconductor manufacturing equipment and warned that overly broad and unilateral controls can harm the industry without boosting national security.

On 17 October, the United States unveiled new restrictions on advanced computing semiconductors and semiconductor manufacturing equipment going to China and other countries of concern, tightening loopholes to export controls introduced a year ago and especially cracking down on chip technologies with military and artificial intelligence (‘AI’) applications.

SIA, which says it represents 99% of the US semiconductor industry by revenue and nearly two-thirds of non-US chip firms, issued a statement warning that if export controls are overly restrictive, customers will try to buy elsewhere.

The SIA statement said: ‘We are evaluating the impact of the updated export controls on the U.S. semiconductor industry. We recognize the need to protect national security and believe maintaining a healthy U.S. semiconductor industry is an essential component to achieving that goal. Overly broad, unilateral controls risk harming the U.S. semiconductor ecosystem without advancing national security as they encourage overseas customers to look elsewhere. Accordingly, we urge the administration to strengthen coordination with allies to ensure a level playing field for all companies.’

https://www.semiconductors.org/sia-statement-on-new-export-controls-2/