Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
Chip export news
Treasury Secretary Janet Yellen said she is “concerned” about China’s new export controls on critical minerals used to produce semiconductors (see 2307060053), saying the U.S. is still assessing the impact but that they “remind us of the importance of building resilient and diversified supply chains.” Speaking during a July 7 roundtable with American businesses in China, Yellen said the administration is working to make sure U.S. companies are competing with China on a “level playing field.”
Micron Techology is preparing for revenue losses caused by China’s recent sales restrictions on its products, saying in a recent Securities and Exchange Commission filing that Beijing “may prevent us from competing effectively with Chinese companies.” The U.S. semiconductor company said the restrictions are leading to “significant headwind” that “is impacting our outlook and slowing our recovery.”
As the U.S. continues to expand its chip export controls, South Korean and other multinational firms with semiconductor investments in China “face an uncertain future,” the Peterson Institute for International Economics said in a report this week. The report, authored by PIIE senior fellow Martin Chorzempa, outlines both the “collateral damage and new opportunities” for South Korean companies as a result of the Commerce Department's Oct. 7 controls (see 2210070049), saying Korean firms “have been some of the most impacted non-Chinese firms due to their large memory chip production facilities in China.” The report also recommends the U.S. do more to “reduce uncertainty” for allies operating in the region.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
The Netherlands last week published new export controls over certain advanced semiconductor manufacturing equipment in a step aimed at bringing Dutch policies more closely in line with strict U.S. export licensing requirements against China. The measures, previewed by the government in March (see 2303090032), take effect Sept. 1 and will require exporters to apply for and receive an authorization before shipping a “number of very specific technologies for the development and manufacture of advanced semiconductors.”
The U.S. is “overstretching the national security concept” and “abusing export control tools,” a spokesperson for China’s Foreign Ministry told reporters June 30, according to a transcript in English of the regular press conference where the comment was made. The spokesperson, asked about recent steps taken by the Netherlands to restrict exports of advanced semiconductor manufacturing equipment (see 2306300028) and potential future controls imposed by the Biden administration (see 2306290048), said the U.S. is “using all sorts of pretexts to cajole or coerce other countries into joining its technological blockade against China.” The country will “closely monitor relevant developments and firmly defend our lawful rights and interests.”
New potential U.S. export controls on a broader set of artificial intelligence-related chips could have massive impacts on the chip industry and American chipmaker Nvidia, said Colette Kress, Nvidia’s chief financial officer. Kress, speaking about reports that the Biden administration could tighten existing chip export restrictions as it prepares to finalize its China chip export control rule from October, said new license requirements could deal permanent damage to American chip industry sales in China.
Proposed U.S. guardrails around the Chips Act aren’t likely to stop semiconductor companies from applying for funding, Michael Schmidt, the Commerce Department official in charge of the program, said this week. While Semiconductor Industry Association CEO John Neuffer agreed, he also urged the government to coordinate any chip-related restrictions with trading partners or risk U.S. companies losing Chinese market share, calling the idea of decoupling a “protectionist fairy tale.”
The U.S. should launch a new office within the Bureau of Industry and Security to measure the intended and unintended impacts of export controls on global supply chains before they are implemented, technology policy experts said in a new Atlantic Council report this week. This could help the U.S. better calibrate its trade restrictions so they don’t alienate allies and hurt American competitiveness, the report said, and could ultimately better convince trade partners to join in on the controls.