Executives from U.S. chip companies met with high-ranking officials from the Biden administration on Monday to address matters related to policies of China. The meeting took place amid considerations of implementing further restrictions and the semiconductor lobby group, representing the industry's call for a pause on additional curbs.
Meeting with Top US Officials
Top executives from leading semiconductor companies in the United States are currently holding discussions with officials at the White House. Accordion to Reuters, the purpose of these meetings is to express their apprehensions regarding newly proposed restrictions that could potentially impact their sales to China.
Among the officials is Secretary of State Antony Blinken, who talked about the industry and chains after his recent trip to China, Commerce Secretary Gina Raimondo, National Economic Council Director Lael Brainard, and National Security Council Director Jake Sullivan.
The discussions between chip company executives and government officials likely revolved around the ongoing U.S.-China trade tensions and the semiconductor industry's concerns. Chips are a critical component in various technologies, and the U.S. and China have been engaged in a trade dispute that has had implications for the global supply chain.
Bloomberg reported that the meeting suggests that the Biden administration is engaging with industry leaders to gather input and insights before making any decisions related to China policy and potential restrictions on semiconductor trade, which highlights the significance of the semiconductor industry in the broader context of U.S.-China relations.
As the Biden administration contemplates imposing further restrictions on chip exports to China, the semiconductor industry is determined to safeguard its profits in the Chinese market. As per the Semiconductor Industry Association (SIA), China's semiconductor purchases amounted to $180 billion last year, surpassing a third of the global total of $555.9 billion and establishing itself as the largest individual market.
CHIPS Act
This also encompassed expediting the allocation of government funds reserved for semiconductor companies under the CHIPS Act. Additionally, they aimed to ensure that U.S. policy does not hinder the chip firms' access to the highly profitable Chinese market.
As of the moment, The Straits Times reported that Commerce Secretary Raimondo oversees the $39 billion CHIPS Act semiconductor manufacturing subsidy program after being approved by Congress last year. This will include a 25% investment tax credit for building chip facilities, estimated at over $24 billion.
The U.S. government is also placing significant emphasis on China's ability to acquire the most advanced artificial intelligence chips. The source mentioned that Washington seems to be nearing a decision to impose stricter regulations regarding the computing speed limitations imposed on such chips.
