Washington Visit: US Semiconductor CEOs Gather for Closed-Door Talks on China Policy

Picture credit: Britannica

According to two persons with knowledge of the situation, the chief executives of Intel Corp. and Qualcomm Inc. want to travel to Washington the next week to discuss China policy.

According to one of the sources, the executives intend to meet with U.S. representatives to discuss the state of the market, export restrictions, and other issues affecting their companies. It was unclear who the executives will meet with right away.

Both Qualcomm and Intel declined to comment, and White House representatives did not immediately respond to a request for a statement.

Other CEOs of semiconductor companies might visit Washington next week, according to the sources. Because they were not authorised to speak to the media, the sources declined to give their names.

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According to individuals who spoke to Reuters in June, U.S. officials are considering strengthening export regulations that apply to exports of high-performance computing processors to Huawei Technologies Co Ltd. The regulations would apply to Qualcomm, which has a licence to sell semiconductors to Huawei, and Intel, which is developing a new artificial intelligence processor that may be sent to China.

Last October, the Biden administration unveiled a comprehensive set of regulations with the goal of immobilising China’s semiconductor industry while the United States pours billions of dollars in subsidies into its own chip industry.

Nvidia would be particularly heavily hurt by the potential regulation tightening. Early this year, the company’s value reached $1 trillion thanks in part to its dominant position in the AI chip market.

As lawmakers and the White House attempt to move more production to the U.S. and its allies and away from China, the chip industry has garnered warm support in Washington in recent years. Both Qualcomm CEO Cristiano Amon and Intel CEO Pat Gelsinger frequently meet with government representatives.

The meetings next week, which one of the sources indicated might include executive-U.S. official joint sessions, come as Nvidia Corp. and other chip companies worry about a long-term loss of sales for a sector with significant business in China as tensions between Washington and Beijing rise.

According to one of the sources with knowledge of the situation, the CEOs’ objectives for the talks would be to make sure that government representatives understood the potential effects of any further restrictions on the types of chips that can be sold to China.

More than one-fifth of the income for many American semiconductor companies comes from China, and industry leaders have claimed that decreasing those sales would reduce the revenues that are used to fund research and development.

Kaitlin Welch

Kaitlin Welch manages to cover anything. She is our freelance contributor. Kristie is responsible for covering reporting in finance and business News categories. Kaitlin has experience of 5 years as a reporter to News insights. Kaitlin writes related to the News Category.

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