A German think tank specialist in semiconductors' value chain vulnerabilities told the U.S.-China Economic and Security Review Commission he's concerned that the policy focus on bringing more production back to either the EU or the U.S. won't achieve its aims because policymakers aren't sure what those aims are.
The U.S. should create a new multilateral export control regime to counter China’s unfair industrial policies and misuse of sensitive technologies, said Mark Dallas, an associate professor at Union College in New York and a fellow with the Council on Foreign Relations. A new regime would create a “unified, clear and multilateral voice” around export controls and would reduce “commercial tensions” between the U.S. and its allies through better information sharing and enforcement.
The World Trade Organization must renew the moratorium on customs duties on electronic transmissions (see 2205190049) at the ministerial conference in Geneva next week, said John Neuffer, CEO of the Semiconductor Industry Association. In a June 9 SIA blog post, Neuffer said the moratorium is at “serious risk” from some WTO members who are in favor of the increased tax revenue the duties could bring.
Lawyers are continuing to see an uptick in outreaches by the Committee on Foreign Investment in the U.S. related to non-notified deals, especially if they involve Chinese investors. Carl Valenstein, a CFIUS lawyer with Morgan Lewis, said some of his clients in the life sciences sector, even though they weren’t working with critical technologies, have recently been contacted by CFIUS.
The EU and Taiwan held a trade and investment dialogue last week, which included talks about boosting cooperation in export controls, sanctions and foreign investment screening. The two sides also hope to “deepen their cooperation” in the semiconductor industry and want to improve market access for EU agricultural products in Taiwan, the EU said.
Russia will restrict exports of certain noble gases that are used to make chips, Reuters reported June 3. The restrictions will apply to neon and other gases until Dec. 31, the report said. Exports will be allowed only with special government permission. Russia said it hopes to increase its production capacity for the gases and to strengthen its position in the global chip supply chain, the report said.
The U.S. and South Korea may have to build more trust if they want to effectively coordinate on technology competition issues, experts said during a June 2 event hosted by the Center for Strategic and International Studies. Although the May meeting between President Joe Biden and South Korean President Yoon Suk Yeol was a good first step, speakers said the two sides will likely face challenges implementing some of their goals, including an improved trade and technology partnership.
The U.S. and the EU should focus export control efforts under the Trade and Technology Council (see 2205160033) around end-use and end-user controls, rather than on a technology’s “capabilities,” industry told the EU in comments released May 31. Trade groups also said the U.S. and the EU should better harmonize their restrictions around “intangible” transfers, which have been implemented differently and have caused confusion among companies.
Dutch semiconductor equipment manufacturer ASML is planning a $200 million expansion of its Connecticut chip facility, the Commerce Department said this week. The site is already the company’s largest American research, development and manufacturing facility, and the expansion is expected to help the company meet “projected demand in the years ahead,” ASML CEO Peter Wennink said. The announcement comes as Congress looks to pass the Bipartisan Innovation Act, which would include incentives and funding for the semiconductor industry.
An aggressive timeline that aims to file a conference report by June 21 for the House and Senate China packages has lobbyists speculating that none of the proposals in the trade titles will be in the final bill because the two chambers are too far apart. The two chambers have relatively similar renewals of the Generalized System of Preferences benefits program and a big difference in their renewals of the Miscellaneous Tariff Bill. Each chamber has proposals the other doesn't, such as directing the administration to reopen Section 301 exclusions (Senate only); changing antidumping and countervailing duty laws (House only); removing China's eligibility for de minimis benefits (House only); and renewing and expanding Trade Adjustment Assistance (House only).