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Chip industry groups slam expected rules in private letter to Biden
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Chip industry groups slam expected rules in private letter to Biden
Jan 14, 2025 4:37 PM

Jan 14 (Reuters) - A half-dozen trade groups from the

semiconductor and manufacturing industries sent a private letter

to U.S. President Joe Biden complaining that new export controls

expected this week were rushed through without consulting them.

The Biden administration on Monday released regulations on

where computing chips from Nvidia ( NVDA ) can be placed around

the world, setting up a three-tier system in which most nations

will need to obtain licenses to build AI data centers with U.S.

chips.

In a letter to Biden dated January 13 that was not released

publicly, trade groups including the Semiconductor Industry

Association, which represents chip firms, and SEMI, which

represents firms that make tools to manufacture chips,

complained about that rule as well as another rule that could

come as early as this week.

"We understand that this additional rule will even more

strictly control high bandwidth memory, without consideration of

how such changes may impact U.S. companies or cede market share

to global competitors," the letter said.

"Again, these pending regulations have been developed

without appropriate industry consultation or the opportunity for

public comment, despite their long-term impacts and economic and

international significance."

The SIA and SEMI did not immediately respond to a request

for comment.

High-bandwidth memory, currently manufactured by U.S. and

Korean firms, is a critical ingredient to building advanced AI

chips, and the rule would restrict its sale to China.

A source familiar with the expected rules said they could

also reverse an earlier interpretation of the rules that allowed

companies such as Lam Research ( LRCX ), which supplies

equipment to memory chip makers in China, to bring in hundreds

of millions more dollars in revenue than it had previously

anticipated.

Lam did not immediately respond to a request for comment.

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