US chip industry calls for ‘vital’ access to Chinese market hours after Joe Biden announces curbs

Name: China imposes restrictions on US chip maker Micron, escalating tech war
Uploaded: 2023-08-10T07:01:31.000Z
Duration: 2 min 5 s
Description: China imposes restrictions on US chip maker Micron, escalating tech war

Semiconductor Industry Association hopes ‘final rules allow US chip firms to compete on a level playing field and access key global markets, including China’

SIA says industry is still waiting for promised federal subsidies – roughly US$50 billion

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The American semiconductor industry has urged both Beijing and Washington to “ease tensions and seek solutions through dialogue, not further escalation”. Photo: AP Photo

Khushboo Razdanin New York

Published: 3:01pm, 10 Aug 2023Updated: 6:03pm, 10 Aug 2023

American semiconductor firms have called on the Biden administration to ensure unhindered access to the Chinese market – just hours after the US president signed an executive order restricting outbound investment in key tech industries that could benefit China’s military.

On Wednesday, the Semiconductor Industry Association (SIA), the Washington-based trade body of the US chip industry, reacted warily to the move, which is expected to sharply escalate already fierce US-China economic and technological rivalry.

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China imposes restrictions on US chip maker Micron, escalating tech war

While emphasising that the industry recognised the need to protect national security, the SIA said it believed ensuring a “strong and globally competitive” US semiconductor industry was “vital” to achieving that goal.

“We hope the final rules allow US chip firms to compete on a level playing field and access key global markets, including China, to promote the long-term strength of the US semiconductor industry and our ability to out-innovate global competitors,” the association read.

It said it welcomed the opportunity to give feedback as part of the public comment period.

The US Treasury Department will be responsible for implementing and administering the new rules. It will accept written public commentary for the next 45 days to inform its formulation of what Treasury Secretary Janet Yellen has described as a “narrowly targeted” programme.