White House Prepares Curbs on Russia’s Access to U.S. Technology

Kevin Wolf, Akin Gump’s international trade partner working on export controls under the Obama administration, said the White House could adapt the use of export controls to target specific strategic areas, for example by companies in the aerospace or maritime industry, bypassing products. Such as a washing machine.

Mr. Wolf said.

Andy Shore, co-lead of global arbitration, trade and advocacy for Sidley Austin, said the sanctions are likely to focus on semiconductor and semiconductor equipment. When it comes to semiconductors, the novel export controls that the United States has achieved against Huawei have a strong reach, as even chips made abroad are mostly manufactured and tested using machinery based on American design, he said.

“It’s not just what is physically exported from the US,” he said. Said Shore. “It could contain a significant amount of production, as much of the semiconductor industry relies on US technology.”

The global semiconductor industry, which has been plagued by shortages and supply chain disruptions throughout the epidemic, could face further disruptions due to Ukraine’s role in the semiconductor supply chain.

Stacey Rasgone, a senior analyst at Bernstein Research, said that Ukraine is an important place for the purification of gas neon used in the manufacture of semiconductors. While neon costs were only a small fraction of what semiconductor companies pay, “potentially jeopardizing a significant portion of refining capacity seems somewhat ominous for an industry already struggling with scarcity,” he said.

A source close to the Semiconductor Industry Association said the group was still evaluating the potential implications regarding the roles of Russia and Ukraine as content suppliers. But he said Russia is not a significant direct consumer of semiconductors, accounting for less than 0.1 percent of global chip purchases, according to the World Semiconductor Trade Statistics Institute.

Similar Posts

Leave a Reply

Your email address will not be published.