Chip Lobby Group SEMI To EU: Export Restrictions Should Only Be Used In Self-defense
SEMI, an industry association representing 3,000 chip vendors, would really appreciate it if the European Union would back off plans to impose export controls on China, arguing that they should only be used as a "last resort" to protect national security.
In a paper [PDF] published on Monday, the industry association laid out its criticisms of the European Commission's five-point strategy [PDF] to improve the bloc's economic security and stem the flow of sensitive technologies to China.
Restrictions on the export of chip tech have become a potent instrument in US efforts to stifle China's domestic semiconductor industry. European nations, under pressure from US interests, have taken actions such as the Netherlands’ government barring the export of ASML's deep ultraviolet (DUV) lithography machines used in the production of latest-gen semiconductors to China.
While SEMI acknowledges the need for export controls to prevent sensitive technologies reaching potentially hostile powers, it urges sparing use of the instruments.
"SEMI Europe would like to recall that the success of the European and global semiconductor industry is built upon a complex supply chain and that export controls should indeed on be a last resort for cases with genuine concerns for national security," the group argues.
Among the measures proposed by the European Commission is tougher screening of foreign investments in the EU's chipmakers. SEMI contends that, due to the complex supply chains on which semiconductor vendors rely, efforts to screen foreign investments could end up backfiring.
"Over the last decades, European semiconductor companies have greatly benefitted from substantial investment from outside the EU," the industry association notes, adding that the EU should avoid "the introduction of excessive screening mechanisms that may discourage non-EU investors and undermine the potential success of the European Chips Act."
In other words, please don't scare away foreign investors – we kinda need them.
- AMD may have failed to dumb down its chips enough to allow China sales
- Seoul accuses North Korea of stealing southern chipmakers' designs
- Synopsys unleashes Ethernet on steroids with 1.6T blueprint to turbocharge AI training
- Chip fab supplier Applied Materials gets subpoenaed over China sales
Unsurprisingly, SEMI isn't a huge fan of the European Commission scrutinizing outbound investments either, arguing that it would put an unnecessary burden on local semiconductor businesses.
"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 in global markets," the paper reads.
Instead, SEMI makes the case that if ensuring Europe's economic security is the goal, export controls should be the "primary instrument for preventing technology leakage" – and only when absolutely necessary.
However, a recent investigation by the US – where investment in Chinese firms is already heavily restricted – would seem to undermine that argument. That report found that investments by US firms in Chinese chip vendors, including SMIC, played a pivotal role in the advancement of the Middle Kingdom's domestic semiconductor manufacturing capability.
Instead of heavy-handed protective measures, SEMI makes the case that European chip firms would be better served by placing an equal emphasis on promotion of economic opportunities and the creation of partnerships with non-European countries.
"The EU should work to guarantee its companies the highest possible level of access to the global markets," the group contends. ®
Apple's Latest Breakthrough: Unveiling The Most Powerful AI Chip Yet
In a move that underscores its commitment to advancing artificial intelligence (AI) capabilities, Apple has recently int... Read more
Microsoft's Renewable Energy Leap: A Big Step Towards Sustainable Data Centers
In a significant move towards sustainability, Microsoft recently finalized a monumental deal with Brookfield Renewable, ... Read more
Data: The Sword And Shield Against Disinformation
In the age of information overload, distinguishing fact from fiction has become a daunting task. Disinformation, the del... Read more
Taking Flight: Volocopter's Quest To Revolutionize Urban Mobility Gains Momentum
Volocopter, a pioneering company in the field of urban air mobility, is on a mission to transform how people move around... Read more
OnlyFans Under The Microscope: Addressing Concerns Over Child Safety
Concerns Over Child SafetyOnlyFans' ResponseRegulatory ActionsCollaborative EffortsFuture DirectionsConclusion Read more
The AI Arms Race: Big Tech's Bid For Dominance In Artificial Intelligence
In the rapidly evolving landscape of technology, the race for dominance in artificial intelligence (AI) has intensified ... Read more