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.