Leading US chip CEOs to lobby to limit Chinese export controls
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The CEOs of Intel, Qualcomm and Nvidia are expected in Washington this week to lobby the government not impose yet more restrictions on technology sales into China, according to reports by Bloomberg and Reuters.
Intel CEO Pat Gelsinger could be one of the most vociferous of lobbyists and his need the most urgent. He is returning from China where he was reported to be meeting with the antitrust regulator there to approve his company’s takeover of foundry Tower Semiconductor Ltd. (Migdal Haemek, Israel).
The deal was announced more than a year ago but without the Chinese regulator’s approval the deal is unlikely to go ahead (see Intel’s CEO makes trip to see Chinese regulator over Tower). It faces a deadline on August 15. The lack of that deal could have serious implications for Gelsinger’s turnaround plan for Intel.
But Qualcomm is also heavily dependent on China for income and Nvidia is a market leader in the sale of GPU chips into datacenters to execute artificial intelligence software. Both are losing sales as a result of export controls.
The US administration claims that restricting Chinese access to technology improves US security by preventing China from upgrading its military capabilities.
Supression or protection
Over the last ten months the US administration has sought to tighten restrictions on AI chips and chip manufacturing equipment that can be exported to China. It has encouraged Japan and the Netherlands to take the restrictions further than before (see ASML sees export controls on latest DUV lithography equipment).
Whereas the US portrays the export restrictions as narrow and focused, China is expressing outrage and claims the US is refusing to allow trade as a means of supressing legitimate economic competition and development. US diplomats have been trying to calm tensions with recent visits to Beijing by US Secretary of State Anthony Blinken and Janet Yellen, Secretary of the Treasury (see Micron tips China packaging plan as politicians meet).
Qualcomm gets 60 percent of its revenue from China, Intel about 25 percent and Nvidia about 20 percent, the reports said.
Related links and articles:
Micron tips China packaging plan as politicians meet
Intel’s CEO makes trip to see Chinese regulator over Tower
China squeezes the West’s access to gallium, germanium
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