Semiconductor Group Urges Caution: China Chipmaking Sanctions Should Be Last Resort, Warns EU Against Further Restrictions

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Semiconductor group says China chipmaking sanctions should be the 'last resort,' cautions EU against further restrictions © Intel

SEMI Europe, a semiconductor industry association, has responded to the European Commission’s call for feedback on the formulation of the European Economic Security Strategy. In their paper, SEMI Europe emphasizes the importance of international collaboration within the chip industry and proposes establishing a structured dialogue between industry stakeholders and legislators. They also caution against imposing further restrictions on China, highlighting the need for maintaining free trade partnerships to ensure security during geopolitical crises.

While SEMI Europe supports the European Economic Security Strategy’s focus on enhancing economic security and minimizing risks, particularly through initiatives like the European Chips Act, they stress that export controls should be a last resort. They argue that maintaining an open investment environment and free trade partnerships is crucial for the success of the semiconductor industry.

The association suggests that export controls should only be applied in cases where there are genuine concerns for national security. They advocate for increased EU coordination on export controls while simultaneously promoting a multilateral and rules-based global order.

In summary, SEMI Europe believes that collaboration, dialogue, and maintaining open trade relationships are essential for the success and security of the European and global semiconductor industry. They emphasize the importance of balancing economic security with maintaining a conducive environment for international cooperation and trade.

SEMI Europe argues against overly restrictive export controls that target hypothetical risks rather than clearly identified ones. They propose a coordinated approach to export controls among EU member states, similar to the Wassenaar Agreement, to ensure that regulations are based on genuine risks and do not unduly burden the industry.

The association stresses the importance of international cooperation and competitiveness for the European semiconductor industry. They advocate for the freedom of European semiconductor companies to make investment decisions without excessive restrictions, as limitations could hinder their agility and competitiveness in the long term.

SEMI Europe expresses concerns about rigorous vetting of inbound investments, warning that such measures could deter companies from investing in Europe and undermine the objectives of initiatives like the European Chips Act. They recommend measures to strengthen the high-tech ecosystem, including targeted funding and public-private partnerships.

Additionally, SEMI Europe calls for ongoing structured discussions with the industry to avoid imposing unnecessary administrative burdens that could slow down innovation. They emphasize the importance of collaboration between industry stakeholders and policymakers to ensure that regulations support innovation and competitiveness in the semiconductor sector.

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