A half-dozen trade groups from the semiconductor and manufacturing industries have written a private letter to US President Joe Biden, expressing concerns that new export controls on computing chips are being rushed through without proper consultation or public comment.
The letter, dated January 13, was sent by industry associations such as the Semiconductor Industry Association and SEMI, which represents firms that make tools to manufacture chips. The groups are objecting to new regulations that will introduce a three-tier system for the use of US chips in AI data centers, with most nations requiring licenses to build such centers.
The letter also expresses concerns about a second rule that may be released as early as this week, which would further restrict the sale of high-bandwidth memory to China. This type of memory is currently manufactured by US and Korean firms and is a critical ingredient in the production of advanced AI chips.
The trade groups argue that the new regulations have been developed without proper consultation with the industry or an opportunity for public comment. They warn that the restrictions could have significant long-term impacts on US companies and cede market share to global competitors.
The groups also suggest that the regulations may reverse an earlier interpretation of the rules that allowed companies such as Lam Research, which supplies equipment to memory chip makers in China, to bring in hundreds of millions of dollars more in revenue than it had previously anticipated.