US export controls unsettle semiconductor industry

The US government's latest chip export control rules are causing more uncertainty in the global semiconductor industry, which will slow tech advancements around the world, experts said.

The comments came after the Semiconductor Industry Association, which represents 99 percent of the US semiconductor industry by revenue, wrote a letter to the US government on Thursday to request an extension of the comment period for its latest chip export control rules.

The SIA said in a letter to Alan Estevez, US under secretary of commerce for industry and security, asking for an extension of the comment period for the rules from 60 days to 90 days, or to Jan 17.

The US government earlier this month enacted another set of export restrictions that clamped down on which chips and chipmaking tools can be exported to China.

Robert Hoffman, head of government affairs at US chip company Broadcom, said in a statement that it agrees with the SIA's request to extend the public comment period, and it is important that trade policies are carefully constructed so that they do not unnecessarily place US companies at a competitive and innovation disadvantage.

"We will continue to work with our industry colleagues to share our concerns directly with the US government through this formal comment process," Hoffman said.

Xiang Ligang, director-general of the Information Consumption Alliance, a telecom industry association, said the responses from the US chip industry show that Washington's latest chip export control rules are further disrupting the global chip industry by piling uncertainty on the sector, which has already been struggling with weak demand.

Rounds of US-led export control measures are adding significantly to the costs of communication and operation of the global semiconductor sector, Xiang said.

Morris Chang, founder of the world's largest chip maker Taiwan Semiconductor Manufacturing Co, said at an event hosted by the Asia Society in New York on Thursday that cutting off the Chinese mainland's chip industry from the rest of the world would affect other players beyond the Chinese mainland.

"I think that decoupling will ultimately slow down everybody," Chang said.