Posted on 04/28/2018 4:40:54 AM PDT by reaganaut1
Rumors out of Washington these days regarding technology boggle the mind, with the unthinkable sounding more and more possible at a time of intense rhetoric: A ban by the Trump administration on all sales of computer chips by U.S. companies to China.
Under legislation known as the International Economic Emergency Powers Act, or IEEPA, instituted during the Iranian hostage crisis, the executive branch can place quotas on U.S. goods, and restrict what can be sold, in order to sanction a target country on national security grounds.
Computer chips are a tremendous area of leverage for the U.S. on the global stage, especially given China’s poorly developed semiconductor efforts. Chips could be the big stick that Trump reaches for next to punish China.
The prospect of a ban could create some very bad headlines for U.S. chip companies, even if things are settled through negotiations. More importantly, China, already fearful of its reliance on U.S. chips, may redouble its efforts to cultivate a home-grown industry. “When I talk to trade experts around D.C., the No. 1–used word is unprecedented,” says Ed Mills, a Washington-based policy analyst at Raymond James. Mills believes a broad ban is increasingly possible.
What Mills views as unprecedented is the use of IEEPA for trade purposes. “The administration has extended the definition of national security to one of economic security, of not letting our technology secrets out,” says Mary Lovely, a senior fellow with the Peterson Institute.
Neither the Treasury Department nor the Commerce Department, which often implement trade restrictions, responded to requests for comment on these issues.
The chip industry has had enough unexpected encounters with regulation this year to make a ban on chip sales conceivable.
(Excerpt) Read more at barrons.com ...
The artcle always refers to sales of US brand chips, not the export of US brand chips. I know some chips are made in the US, but does anyone know what portion of US brand chips are still produced here?
No, you help them by using the leverage/national power at your disposal to drive FAIR trade arrangements on a bilateral basis.
Unlike those who would sell the nation’s wealth and prosperity for a chance to skim a percent off the top.
And, their advocates.
Certainly Intel is at high risk.
They invested 10s of billions in China, both manufacturing and R&D. Half their low-end manufacturing is in China.
Intel opens first chip manufacturing plant in China
Lots of chip activity in China involving Intel and others.
Intel chip production in China
I think this article is mostly about the sale of chips to China from a national security viewpoint, not necessarily the export of chips. And that Google just covers Intel.
But there are still many Intel plants in the US, but it looks like most of the assembly and testing is done in cheap labor nations.
List of Intel manufacturing sites
I believe a huge amount of US brand chip production, testing and assembly has already been moved to cheap labor nations.
“Your isolationist vision is never going to come about.”
It’s already here and is the dominant political sentiment nationwide.
“Free Trade” advocates are unelectable. Unless they LIE.
I am an economic isolationist (i.e patriot) but in other things not do much. Nice broad brush painting on your part....
>> facts are facts and no amount of fallacious ad hominem attack will change them <<
Don’t bother us with facts. We don’t need no stinkin’ facts.
Intel Dalian plant is fabricating only 65nm chips. All the advanced fabs are in the USA + 1 in Ireland and 1 in Israel.
65nm is ancient technology from 2005.
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