July 17 (Reuters) – The U.S.-based Semiconductor Industry Association trade group on Monday called on the Biden administration to “refrain from further restrictions” on chip sales to China as chief executives from the largest U.S. semiconductor companies plan to visit Washington this week for a lobbying visit. Their views on China’s policy.
The statement came as the Biden administration considers updating a sweeping set of rules imposed in October to disrupt China’s chip industry and a new executive order restricting some foreign investment.
Reuters reported last week that the CEOs of Intel Corp (INTC.O) and Qualcomm Inc (QCOM.O) planned to meet with government officials to discuss their views on China policy.
The statement also comes after China moved to restrict exports of raw materials such as gallium and germanium, which are used to make chips. The industry group said further tightening of rules by US officials risks “disrupting supply chains, causing significant market uncertainty, and prompting continued upward retaliation by China.”
The industry group said it wanted “the administration to refrain from further restrictions until it engages extensively with industry and experts to assess the impact of existing and potential restrictions to determine whether they are narrow, clearly defined, consistently enforced, and fully coordinated with allies.”
A spokesperson for the US National Security Council said the rules were designed to ensure US technologies are not used in ways that undermine the country’s national security.
“We have been deliberating on getting this right, including through extensive public comment on the regulations, and through extensive coordination with allies and partners, The Hill, industry, and other stakeholders,” the spokesperson said in a statement.
(Reporting by Stephen Nelis in San Francisco, Karen Freifield in New York and Andrea Schalal in Washington; Editing by Nick Zieminski)
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