Here’s how IBM, Intel, and Samsung are asking Biden not to Trump against Huawei on semiconductors
Semiconductor industry – including IBM and Intel – urges Biden administration to review export controls in China
The unilateral export policies promoted by Trump (the famous blacklists) did not please the semiconductor industry.
Last week Semi, the global semiconductor industry association, asked the Biden administration for a review of the Trump administration's export control policy.
In the letter sent by Semi , the new US Secretary of Commerce, Gina Raimondo , is also urged to collaborate with the allies when the sales of US technology to China are limited in the name of national security.
Therefore, the association has called for a review of legislation passed last August that expanded the US authority over the sales of foreign companies to Chinese Huawei. According to Semi, the latter has unintentionally influenced the competitiveness of items of US origin.
The Trump administration has waged war on Chinese chip makers, in the name of protecting national security. After Huawei and ZTE, Washington has also targeted semiconductor companies , such as Taiwan Semiconductor Manufacturing Co (Tsmc) and Semiconductor Manufacturing International Corp (Smic).
All the details.
THE LETTER TO THE SECRETARY OF TRADE GINA RAIMONDO
Semi said the previous administration's unilateral rules on exports made any potential benefits less effective over time. Not only that, they have unnecessarily harmed American industry and left US exporters vulnerable to retaliation.
In the letter, the president of Semi, Ajit Manocha, said that the United States should coordinate with allies whose companies compete in the global market.
SENT BY THE GLOBAL ASSOCIATION OF THE SEMICONDUCTOR SECTOR
Semi is the global association of the semiconductor industry. It has over 2,400 members worldwide, including over 400 members in the United States. Semi represents the full range of US semiconductor companies, including device and equipment manufacturers, material manufacturers, and software designers.
BROADCOM, INTEL AND SAMSUNG AMONG ASSOCIATES
Among the 2 thousand member companies, even giants such as Broadcom, Intel, IBM and Samsung Electronics are part of Semi.
THE CRITICISM OF THE TRUMP ADMINISTRATION
The letter criticizes the Trump administration for implementing rules with little public contribution and no clear general policy.
Notably, the rules limiting sales to more than 100 companies in the United States linked to the Chinese military went into effect without consulting the industry.
Furthermore, these measures leave US exporters and their customers vulnerable to similar unilateral retaliatory action against US measures. In this regard, he mentions the recent order from the Chinese Ministry of Commerce to counter "the unjustified extraterritorial application of foreign measures".
THE REQUESTS TO THE BIDEN ADMINISTRATION
In the letter, the association refers to a backlog of export licenses that negatively affects global competitiveness. Delays act as de facto denials of the license according to Semi. They therefore create uncertainty that inevitably weighs on the design of US technology.
So Semi asked the Biden administration to take action to ensure that delays in the process do not harm the competitiveness of US-sourced items.
THE NODE OF EXPORT CONTROL
As Alessandro Aresu, Limes scientific advisor tweeted , "Semi's letter laments the effects on the semiconductor industry of the Trump administration's" ambiguous and unilateral "decisions.
The technology war between China and the United States could therefore change track with Biden if it changes export controls.
Especially for a crucial market such as the semiconductor market.
SEMICONDUCTORS, A 439 BILLION DOLLAR MARKET
In 2020, global chip sales stand at $ 439 billion, according to data from the Semiconductor Industry Association (Sia), up 6.5%. The latter is a trading group that represents most of the US chip makers along with many international companies . Sia said US chip makers' sales stand at $ 208 billion, about 47% of the total.
Chip sales in the United States totaled $ 94.15 billion, up 19.8% over the previous year.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/ecco-come-ibm-intel-e-samsung-chiedono-a-biden-di-non-trumpeggiare-contro-huawei-sui-semiconduttori/ on Tue, 02 Feb 2021 08:11:16 +0000.