New Export Restrictions on Huawei to Disrupt US Semiconductor Industry, SIA Says

The Commerce Department’s increased restrictions on exports to Huawei (see 2008170029) will cause “significant disruption” to the U.S. semiconductor industry, the Semiconductor Industry association said Aug. 17. Although SIA is “still reviewing the rule,” CEO John Neuffer called the restrictions “broad” and said they significantly expanded on changes made to the foreign direct product rule in May (see 2005150058). “We are surprised and concerned by the administration’s sudden shift from its prior support of a more narrow approach intended to achieve stated national security goals while limiting harm to U.S. companies,” Neuffer said. “We reiterate our view that sales of non-sensitive, commercial products to China drive semiconductor research and innovation here in the U.S., which is critical to America’s economic strength and national security.” Commerce did not comment.