US chip industry criticises Biden’s export control policies

New US export rules may restrict high-bandwidth memory sales to China, sparking backlash from chip industry groups.

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Several chip and manufacturing industry groups have criticised the Biden administration’s new export controls, arguing they were implemented without sufficient consultation. A private letter sent to President Joe Biden on January 13 expressed concerns that the rules could harm US companies and shift market share to global competitors.

The Semiconductor Industry Association (SIA) and SEMI, representing chipmakers and manufacturing equipment firms, objected to the new licensing requirements for AI chip exports, including advanced high-bandwidth memory. They argued the lack of public input ignored the regulations’ economic and international consequences.

High-bandwidth memory, essential for AI chip production, is primarily manufactured by US and South Korean companies. The new rules could restrict its sale to China, further tightening controls on advanced technology exports.

A separate source suggested the restrictions may also affect companies like Lam Research, which previously benefited from a rule interpretation allowing expanded sales in China. Neither the SIA, SEMI, nor Lam Research commented immediately.