MILPITAS, Calif. – August 24, 2020 – SEMI, the industry association serving the global electronics design and manufacturing supply chain, today released the following statement in response to the new export control rule changes announced by the United States Commerce Department.
SEMI recognizes the role of export control measures to address threats to U.S. national security. However, we are very concerned the new export control regulations issued on August 17, 2020, by the U.S. Department of Commerce will ultimately undermine U.S. national security interests by harming the semiconductor industry in the U.S. and creating substantial uncertainty and disruption in the semiconductor supply chain. On July 14, in public comments on the May 15 regulations, SEMI cautioned that those relatively narrow actions created unique disincentives to purchase U.S.-origin semiconductor equipment and design software and had already resulted in $17 million lost sales of U.S-origin items to firms unrelated to Huawei.
Commerce’s decision to significantly expand these unilateral restrictions will likely lead to more lost sales, eroding the customer base for U.S-origin items. The new restrictions will also fuel a perception that the supply of U.S. technology is unreliable and lead non-U.S. customers to call for the design-out of U.S. technology. Meanwhile, these actions further incentivize efforts to supplant these U.S. technologies.
SEMI respectfully requests Commerce immediately extend to 120 days the savings clause for items in production before August 17, ensure predictable and timely license decisions for all items and significant flexibility for licenses unrelated to 5G items. We also urge the administration to pursue policies with fewer unintended consequences and damage to U.S. technology leadership. Revenue from global sales is a major source of U.S. research and development (R&D) funding in these technologies; lost global revenue will lead to a decrease in R&D, undermining U.S. semiconductor innovation and thereby harming national security.
SEMI® connects more than 2,400 member companies and 1.3 million professionals worldwide to advance the technology and business of electronics design and manufacturing. SEMI members are responsible for the innovations in materials, design, equipment, software, devices, and services that enable smarter, faster, more powerful, and more affordable electronic products. Electronic System Design Alliance (ESD Alliance), FlexTech, the Fab Owners Alliance (FOA) and the MEMS & Sensors Industry Group (MSIG) are SEMI Strategic Technology Communities, defined communities within SEMI focused on specific technologies. Visit www.semi.org to learn more, contact one of our worldwide offices, and connect with SEMI on LinkedIn and Twitter.