US Chip Makers Quietly Lobbying Biden Admin Against Imposing More Restrictions On Exports To China

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Will Kessler Contributor
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Three top U.S. semiconductor manufacturers are quietly meeting with Biden administration officials Monday to discuss new export restrictions that are being considered related to the ongoing competition between the U.S. and China, according to Reuters.

Intel, Qualcomm and Nvidia are meeting with several Biden administration officials including Commerce Secretary Gina Raimondo, National Economic Council Director Lael Brainard and National Security Council Director Jake Sullivan, according to Reuters. The Biden administration is considering updating rules put in place in October that aim to restrict China’s chip industry by limiting U.S. companies’ cooperation with Chinese chip manufacturers. (RELATED: China Implements Export Controls On Key Metals Used For Chips)

“We urge the administration to refrain from further restrictions until it engages more extensively with industry and experts to assess the impact of current and potential restrictions to determine whether they are narrow and clearly defined, consistently applied, and fully coordinated with allies,” The Semiconductor Industry Association, a lobbying group for the industry, said in a press release Monday.

The U.S. and China have been in a trade war in an effort to gain an advantage in the production of semiconductors that are essential for computing technology and AI development. The U.S. has leveraged its intellectual property claims, and China has leveraged its access to raw materials and minerals.

The White House took action to limit Chinese access to American chip technology by blacklisting multiple Chinese semiconductor manufacturers from doing business with American companies in October. The Biden administration does not plan to end the one-year exemptions to those restrictions that would have come to term later this year for companies like Samsung Electronics and Taiwan Semiconductor Manufacturing.

The CHIPS and Science Act was signed into law in August 2022 and included $280 billion in funding for scientific research and development on semiconductors and other efforts. Of the total, $52 billion was in subsidies for domestic semiconductor manufacturers and $200 billion was for various science, technology, engineering and mathematics research.

The White House, Intel, The Semiconductor Industry Association and Qualcomm did not immediately respond to the Daily Caller News Foundation’s request for comment. Nvidia declined to comment.

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