Chip trade group asks Biden to 'refrain' from further curbs on China
William_Potter
The influential Semiconductor Industry Association trade group said on Monday that it has asked the Biden Administration to eschew further restrictions on semiconductor sales to China.
"Allowing the industry to have continued access to the China market, the worldâs largest commercial market for commodity semiconductors, is important to avoid undermining the positive impact of this effort," the SIA wrote in a statement, referencing the U.S. CHIPs Act that was signed into law last year. 
"Repeated steps, however, to impose overly broad, ambiguous, and at times unilateral restrictions risk diminishing the U.S. semiconductor industryâs competitiveness, disrupting supply chains, causing significant market uncertainty, and prompting continued escalatory retaliation by China."
The SIA added that is calling on both governments to ease tensions and seek solutions, not further escalation. 
"And we urge the administration to refrain from further restrictions until it engages more extensively with industry and experts to assess the impact of current and potential restrictions to determine whether they are narrow and clearly defined, consistently applied, and fully coordinated with allies." 
Members of the SIA include AMD (AMD), Broadcom (AVGO), Intel (NASDAQ:INTC), Nvidia (NASDAQ:NVDA), Wolfspeed (WOLF) and several other firms.
The comments come at a time of increasing geopolitical risks for the global semiconductor industry.
Over the weekend, it was reported that the CEOs of semiconductor companies, including Intel (INTC) and Qualcomm (NASDAQ:QCOM), will hold meetings with U.S. officials to discuss market conditions, export controls, and other matters that impact their business.
In May, China's Cyberspace Administration said it found Micron Technology's (NASDAQ:MU) products have "relatively serious" potential network securities issues and warned that operators of critical information infrastructure should stop purchasing the goods.
Last month, Micron (MU) disclosed that approximately half of its revenue from China is at risk of being lost.
The U.S. Commerce Department published new rules this past October that said companies seeking verification to sell to China would be faced with a "presumption of denial" standard if they produce DRAM chips below 18 nm, above 128 layers for NAND chips and below 14 nm for logic chips and would have to apply for a license.
Since the Commerce Department published those rules, Japan, the Netherlands and Germany have all said or are considering curbing export controls of semiconductor supply chain goods to China on national security concerns.
Related tickers: Nvidia (NVDA), AMD (AMD), Texas Instruments (TXN), ASML (ASML), Applied Materials (AMAT), NXP Semiconductors (NXPI), Taiwan Semiconductor (TSM)
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