America’s largest semiconductor companies are making a last-ditch effort to avoid new restrictions on their sales to China, as their top executives are scheduled to travel to Washington next week for talks with administration officials and lawmakers.
Executives at Intel Corp., Qualcomm Inc. and Nvidia Corp. plan to push to prevent expansion of restrictions on the sale of some chips to China and the hardware needed to make the semiconductors it will roll out. Biden administration in the coming weeks, people familiar with the matter said.
US chip companies view China as a “big market”, despite the risks
While these companies don’t expect to prevent all measures from being imposed, they still see an opportunity to convince the Biden administration team that an escalation will hurt the White House’s current diplomatic efforts to engage Chinese officials and forge a more productive relationship, according to the people, who asked not to be identified because the trip has not yet been announced. .
Electronic chip companies are at the forefront of the escalating disputes between Beijing and Washington. The United States, which embraces most technology companies, believes that restricting China’s access to these technologies would enhance national security and hinder the Asian country’s efforts to enhance its military capabilities.
The companies argued that cutting them off from their largest market would hurt their ability to spend on developing their technologies, and ultimately undermine the leadership position of the United States. Representatives of the three companies declined to comment on the visit.
Qualcomm CEO Cristiano Amon derives more than 60% of his company’s revenue from the Chinese market, by providing components to smartphone manufacturers such as Xiaomi Corp. As for Pat Gelsinger, CEO of Intel, who visited Beijing earlier this month to review the latest artificial intelligence chips produced by his company, he considers that China is the company’s largest sales region, as Intel gets about a quarter of its sales from China. For Nvidia, which is run by co-founder and CEO Jensen Huang, China provides about a fifth of the company’s revenue.
2023-07-16 14:06:52
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