Industry groups are pushing back proposed changes to U.S. export controls regulations which are aimed at curbing the sale of high technology chips to Chinese companies, highlighting the role played by chips in addressing the COVID-19 pandemic.
Nine industry groups have urged U.S. Commerce Secretary Wilbur Ross to allow public comments before allowing the rules to become law so as to avoid unintended consequences.
The changes may “result in significant impacts to the semiconductor industry, its global supply chain, and the broader technology sector,” reads a letter signed by the Semiconductor Industry Association and the National Foreign Trade Council, SEMI, along with six other groups.
“Semiconductors drive the functionality in advanced medical equipment used by health professionals to treat the public,” and enable telework, stated the letter.
Senior U.S. officials have agreed on introducing certain rules in U.S. export control norms in order to prevent Beijing from obtaining advanced U.S. technologies aimed at the commercial market and divert them for military purposes.
The change is likely to impact U.S. U.S. exports which rakes in around $20 billion a year.
The move would “serve as a disincentive for further investments and innovation in the U.S. and lead to the design-out of U.S. technology and components,” reads the letter which also mentions that the proposed new changes are likely to create uncertainty for supply chains “critical to fighting the COVID-19 pandemic.”