US chip executives meet Biden administration on China policy

Top executives from US chip companies held meetings with senior officials from the Biden administration on Monday to discuss China policy.

The semiconductor industry, represented by the most influential lobby group, called for a halt on potential additional restrictions. Secretary of State Antony Blinken engaged in discussions with chip company CEOs regarding the industry and supply chains following his recent visit to China.

Other government officials, including Commerce Secretary Gina Raimondo, National Economic Council director Lael Brainard, and National Security Council director Jake Sullivan, also participated in meetings with executives from Intel, Qualcomm, and Nvidia, according to a report.

The chip industry is concerned about protecting its profits in China, especially as the Biden administration considers imposing further limitations on chip exports.

China accounted for over a third of global semiconductor purchases in 2022, totaling $180 billion, making it the largest single market, as reported by the Semiconductor Industry Association (SIA).

Blinken hoped to “share his perspective on the industry and on supply chain issues, especially after his recent visit to China,” as well as “hear directly from those companies about how they see supply chain issues and about how they see doing business in China,” according to State Department spokesperson Matthew Miller during a press briefing.

Government officials are discussing ways to expedite the distribution of funds allocated for semiconductor companies under the CHIPS Act and to ensure that US policies do not exclude chip firms from the profitable Chinese market.

Also Read

Intel’s Granite Rapids-D chip set to release in 2024

Intel as the tech giant gears up for the highly anticipated release...

The US Secretary of Commerce, Gina Raimondo, is overseeing the implementation of the $39 billion semiconductor manufacturing subsidy program established by Congress.

This program also includes a 25% investment tax credit, estimated to be valued at $24 billion, for constructing chip plants. Additionally, the US government is concerned about China’s access to advanced artificial intelligence chips.

While specific thresholds have not yet been determined, Washington is close to tightening regulations regarding the computing speeds of such chips.

The Semiconductor Industry Association (SIA), based in the US, has urged the Biden administration to avoid imposing further restrictions on chip sales to China and to allow the industry continued access to the Chinese market, which is the largest commercial market for commodity semiconductors.

The administration is also considering updating existing regulations and issuing a new executive order to restrict certain outbound investments.

“Our actions have been carefully tailored to focus on technology with national security implications and designed to ensure that US and allied technologies are not used to undermine our national security,” said a representative for the White House National Security Council.