Computer chip group SEMI to EU: new export controls should be ‘last resort’

The European Union (EU) should think twice before imposing additional export controls or rules on foreign investment, semiconductor industry group SEMI Europe said in a position paper published this week.

The warning comes after the European Commission in January presented a package of plans aimed at improving “economic security” and preventing unwanted technology transfers to rivals such as China.

While the EU is right to weigh risks that its rivals may obtain European technology, SEMI Europe argued free trade partnerships were the best way to ensure security “in geopolitical crisis scenarios”.

“In order to guarantee the long term success and prosperity of the European semiconductor industry, our companies must be as free as possible in their investment decisions or otherwise risk losing their agility and relevance,” the group said.

European Commission plans include harmonisation of export restrictions, stronger vetting of inbound investment, and a probe into whether investments by European companies abroad may also pose a threat.