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U.S. Chip Industry Withdraws Proposed Export Rule Modifications

Industry teams are pushing back on proposed modifications to U.S. export controls that would affect the sale of certain semiconductors and other technology to China, while highlighting the role chips play in addressing the COVID-19 pandemic.

U.S. Chip Industry Withdraws Proposed Export Rule Modifications

In a letter sent Monday, nine groups urged U.S. Commerce Secretary Wilbur Ross to allow public remark before putting the principles into effect to avoid unintended consequences.

The modifications could “result in vital impacts to the semiconductor business, its world supply network, and the broader technology sector,” stated the letter, signed by the Semiconductor Industry Association and the National Foreign Trade Council,  and six different groups.

Noting the general public health disaster, it added: “Semiconductors drive the functionality in advanced medical tools used by well-being professionals to treat the public,” and allow telework.

Last week, senior U.S. officers agreed on new ways to regulate high-tech exports to China. The changes are aimed at stopping China from obtaining superior U.S. technology for commercial functions and diverting it to military use.

The previous week, the officers also agreed to order foreign corporations that use U.S. chipmaking equipment to acquire licenses before supplying specific chips to China’s Huawei Technologies.

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