US chipmakers ask Biden to refrain from restricting China

(Patria) - The Semiconductor Industry Association, a trade group based in the United States, has called on the Biden administration to "refrain from further restrictions" on chip sales to China, as CEOs of major US semiconductor companies planned to visit Washington this week to express their views on Beijing's policies.

The statement comes as the Biden administration is considering updating a comprehensive set of rules imposed in October to curb China's chip industry and a new executive order restricting some outbound investments, Reuters reports.

Reuters reported last week that CEOs of Intel Corp and Qualcomm Inc planned to meet with government officials to discuss their views on China's policies.

The statement comes after China decided to restrict exports of raw materials such as gallium and germanium used in chip production. The industry group said further tightening of rules by US officials risks "disrupting supply chains,

causing significant market uncertainty and provoking continued escalation of Chinese retaliation."

The industry group said it wants the "administration to refrain from further restrictions until it engages more with industry and experts to assess the impact of current and potential restrictions to determine if they are narrow and clearly defined, consistently applied, and fully coordinated with allies."

A spokesperson for the US National Security Council said the rules are designed to ensure that US technologies are not used in ways that undermine the country's national security.