U.S. lawmakers propose scaling back controls of Chinese chips for government use: report
PonyWang

Several U.S. lawmakers have proposed scaling back the controls placed on Chinese-made semiconductors for use by the U.S. government and its contractors after pushback from trade groups, including the U.S. Chamber of Commerce, Reuters reported.
The news outlet, citing a recent draft of the proposal dated December 1, noted that certain trade groups have attempted to dampen the proposals, citing the fact that they would raise costs.
In September, Senate Majority Leader Chuck Schumer and Senator John Cornyn proposed a measure that would have resulted in U.S. federal agencies and contractors to immediately stop using semiconductors made by Semiconductor Manufacturing International Corporation, Yangtze Memory Technologies and ChangXin Memory Technologies.
However, the new draft of the proposal would no longer forbid the contractors from "using" chips made by the companies and would push the compliance date back to five years, Reuters added.
Yangtze Memory Technologies and ChangXin Memory Technologies both compete with Micron Technology (NASDAQ:MU), as well as South Korea's SK Hynix and Samsung Electronics (OTCPK:SSNLF).
Earlier this year, Republican lawmakers, notably Senator Marco Rubio and Representative Michael McCaul, warned Apple (AAPL) from using chips made by Yangtze Memory Technologies inside of its iPhones.
Reuters added that chips made by SMIC are used by companies all over the world and can be difficult to remove because chips are not normally labeled with the manufacturer's name on them.
In the letter written by the Chamber of Commerce and signed by telecom and defense industry groups, the business lobby argued that taking chips from appliances such as toasters would be an extraordinary task and do little to protect national security.
On Tuesday, Micron (MU) CEO Sanjay Mehrotra and a number of other corporate executives are expected to join President Joe Biden during his visit to Taiwan Semiconductor's (TSM) new semiconductor plant in Arizona, slated to open in 2024.