Posted on 07/20/2023 4:38:49 AM PDT by FarCenter
The US Semiconductor Industry Association (SIA) has stepped into the fray to lower tensions between Washington and Beijing over chip exports, as well as calling for further restrictions to be put on ice.
Relations between the two superpowers have become increasingly strained since the US launched a campaign to block shipments to China of advanced semiconductors to power AI, as well as choking sales of anything that might be used to develop and manufacture AI. China has since responded with its own sanctions, raising the risk of an all-out trade war.
Now SIA, the trade body of the US semiconductor industry, has issued a statement urging both governments to wind back the political rhetoric and negotiate a way forward without further escalation.
"We call on both governments to ease tensions and seek solutions through dialogue, not further escalation," the SIA statement reads. "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."
SIA also points to the CHIPS and Science Act, which the Biden administration introduced in order to stimulate the US semiconductor industry, and claimed trade restrictions are potentially eroding these efforts.
"Recognizing that strong economic and national security require a strong US semiconductor industry, leaders in Washington took bold and historic action last year to enact the CHIPS and Science Act to strengthen our industry’s global competitiveness and de-risk supply chains," the trade group states.
"Allowing the industry to have continued access to the China market, the world's largest commercial market for commodity semiconductors, is important to avoid undermining the positive impact of this effort."
Can’t find the graphic. “Potatoes mostly. Some corn.’
Really long matchsticks
Every company that has moved to China has had their IP stolen. When GM built a plant the Chinese built an identical plant. Then soldiers came into the GM plant and took a copy of very piece of IP. The Chinese opened their plant and started building a Chinese version. Obviously, at some point GM will be kicked out and China will be the producer of their cars. “Xi’s Thoughts,”1 the new “little Red Book” focuses on “common prosperity.” That’s code for your-stuff-is-now-my-stuff. We should have been out of China right after the Soviet Union collapsed. But the Chinese government subsidized everything to make it cheaper and, incidentally, to run the Western competitor out of business.
Tariffs are the proper tool to promote domestic industry and to raise revenue. A win-win for the American people/worker.
Stop talking about it! Make the ICs!
90% of the World’s NEON came from two steel mills in Ukraine. One was destroyed early in the war and the other has been without power for over a year.
Neon is essential to lasers that do photolithography for Chips. Look for 5 years of disruptions in Chip production until other sources can be spun up.
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