White House prepares to limit Russia’s access to US technology

Kevin Wolf, an international trade partner for Akin Gump who worked on export controls during the Obama administration, said the White House could regulate the use of controls. exports to target certain strategic sectors, such as companies in the aviation or maritime industries, while ignoring products used by Russians, like washing machines.

“They are making it clear that they are not trying to commit acts of harm to ordinary Russians,” Mr. Wolf said.

Andy Shoyer, co-leader of global arbitration, trade and advocacy for Sidley Austin, said the restrictions appear to be focused on semiconductors and semiconductor devices. The new export controls the US has imposed against Huawei have a strong effect on semiconductors, he said, as even chips made abroad are mostly manufactured and tested. mechanically tested based on American design.

“It’s not just what’s being exported from the US,” said Mr. Shoyer. “It could involve a significant amount of manufacturing, because a lot of the semiconductor industry relies on U.S. technology.”

The global semiconductor industry, which has been affected by shortages and supply chain disruptions throughout the pandemic, may face more disruptions due to Ukraine’s role in the semiconductor supply chain. .

Stacy Rasgon, a senior analyst at Bernstein Research, said Ukraine is an important site for the purification of neon, a gas used in semiconductor manufacturing. While neon costs are a fraction of what semiconductor companies pay, “potentially risking a significant portion of the purge capacity sounds ominous for an industry.” which is already struggling with shortages,” he said.

A spokesman for the Semiconductor Industry Association said the group was still assessing the potential impacts related to Russia and Ukraine’s material supply roles. However, he said Russia is not a significant direct consumer of semiconductors, accounting for less than 0.1% of global chip purchases, according to the World Semiconductor Trade Statistics organization.

https://www.nytimes.com/2022/02/23/business/economy/export-controls-russia-us.html White House prepares to limit Russia’s access to US technology

Fry Electronics Team

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