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Chips Chatter: December 5-12, 2022

Last Week: “Offense” & “Defense” in U.S. Semiconductor Strategy

  • On Dec. 8, the Industrial Advisory Committee (IAC) met to provide an update on the progress of the CHIPS for America initiative’s research and development programs and from committee working groups. The IAC provides guidance to the U.S. Secretary of Commerce related to domestic semiconductor research and development in support of these programs. During the meeting,U.S. Commerce Secretary Gina Raimondo called back to her remarks on China at MIT, arguing that both a defensive strategy, referring to export controls for semiconductor technology, and an offensive strategy, referring to investments in R&D and workforce, are essential for the U.S.’s “national security, its ability to lead, and its global competition with autocratic governments and countries all over the world.”

  • At an event hosted by CSIS on Dec. 6, Alan Estevez, head of the Commerce Department’s Bureau of Industry and Security, also said both defensive and offensive moves are needed to compete. He said, “we will impede the Chinese for a number of years, if we play offense appropriately, that gap will get bigger, because we are innovating at the same time when we are impeding them.”

In Case You Missed It

  1. BIDEN VISITS ARIZONA CHIP FACILITY. On Dec. 6, President Biden travelled to Phoenix, Arizona to visit a Taiwan Semiconductor Manufacturing Co. (TSMC) facility and discuss his economic plan, joined by TSMC founder Morris Chang, Apple CEO Tim Cook, Micron CEO Sanjay Mehrotra, AMD CEO Lisa Su, and NVIDIA CEO Jensen Huang. Also in attendance were U.S. Commerce Secretary Gina Raimondo, Sen. Mark Kelly (D-AZ), and Democratic Arizona Reps. Ruben Gallego, Raúl Grijalva, Tom O’Halleran, and Greg Stanton.

  1. US-EU TRADE TECHNOLOGY COUNCIL MEETING. On Dec. 5, E.U. and U.S. officials met for the third iteration of the Trade and Technology Council (TTC). The Council reached an agreement to implement an early warning system to mitigate semiconductor supply chain disruptions. They also agreed to share information about the domestic subsidies provided to the sector, with the goal of avoiding “subsidy races and market distortions” and ensuring “a more resilient, sustainable, sustainable and innovative semiconductors supply chain.”

  1. JAPAN TO JOIN U.S. EXPORT CONTROL ALLIANCE. According to reports, Japan and the Netherlands have agreed in principle to join the US in tightening controls over the export of advanced chipmaking machinery to China. The measures are expected to be announced in the coming weeks.

  1. CHINA HELPS FIRMS COOPERATE WITH U.S. RULES. The Chinese Ministry of Commerce (MOFCOM) has begun to help its domestic companies through end-use checks by the U.S., which are required by the U.S. Department of Commerce prior to removing firms from its Unverified List (UVL). At the CSIS event, Estevez refrained from commenting on where each company is at in the process of end-user checking but emphasized that the goal of the UVL and the Entity List is to drive better behaviors from countries, and “now we are seeing better behaviors.”

© Copyright 2023 Squire Patton Boggs (US) LLPNational Law Review, Volume XII, Number 347

About this Author

Pablo Carrillo Government Policies Attorney Squire Patton Boggs Law Firm
Of Counsel

Pablo E. Carrillo served as Chief of Staff to US Senator John McCain, Chair of the Senate Armed Services Committee and former US presidential candidate. He was responsible for the development and implementation of the Senator’s legislative and congressional oversight strategy.

Pablo also served as Minority General Counsel of the Senate Armed Services Committee, where he advised the Ranking Member and other Republican Senators on the defense authorization bill and the Minority’s oversight and investigative activities, as well as defense acquisition and contracting policy. He was the...

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Ludmilla Kasulke Trade Attorney Squire Patton Boggs Washington DC
Senior Associate

Ludmilla (Milla) Kasulke draws on her experience in both domestic and international policy to assist clients on trade matters. Milla provides multinational corporations, sovereign governments and entities, and quasi-government entities with advice on a wide range of trade policy, legal, and regulatory issues. She has been actively engaged in all aspects of the Section 232 process, including the exclusion petition process, and regularly advises clients on the impacts of current and potential new actions. Milla also regularly counsels clients on the impacts of current and potential new trade...

Camilo Daza Manga Public Policy Specialist
Public Policy Specialist

Camilo Daza Manga is a member of the firm’s Public Policy Practice, where he helps clients develop strategies to navigate the legislative process and achieve their goals, covering areas such as foreign affairs, trade, technology and education.

Prior to his role as a public policy specialist, Camilo participated in our highly competitive public policy internship program, where he monitored legislative and regulatory developments and analyzed legislation impacting the firm’s expansive network of global clients.