U.S. Sanctions Against China Could Hurt Own Domestic Industry: Semiconductor Industry Association

upstart writes:

U.S. Sanctions Against China Could Hurt Own Domestic Industry: SIA:

While the Semiconductor Industry Association (SIA) - the organization that represents 99% of chip companies in America - understands how important national security is, it believes that curbs against potentially hostile nations could hurt the U.S. semiconductor industry as a whole.

After the U.S. government imposed strict sanctions against Chinese chip and supercomputer sectors, various semiconductor companies lost some $240 billion of stock value nearly overnight. Among those who suffered are various companies, including developers of electronics design automation (EDA) tools, chip designers, wafer fab equipment (WFE) producers, and chipmakers themselves. Without money from Chinese clients, the U.S. semiconductor industry will certainly live and prosper, but with them, it would develop quicker, SIA notes.

"U.S. semiconductor companies are dependent on a "virtuous cycle" of innovation that includes large investments into research and development and access to global markets," a press release by SIA reads. "Historically, U.S. semiconductor companies have consistently invested about one-fifth of their revenues in research and development, among the highest shares of any industry."

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