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

Kevin Wolfe, an international trade partner at Akin Gump who worked in the Obama administration’s export controls, said the White House could adapt the use of export controls to target specific strategic sectors, such as aerospace or maritime companies. products used by the Russian population, such as washing machines.

“They make it clear that they are not trying to take measures that harm ordinary Russians,” Wolf said.

Andy Schoer, co-chair of global arbitration, trade and advocacy for Sidley Austin, said the restrictions are likely to focus on semiconductors and semiconductor equipment. The new export controls that the United States has used against Huawei have strong coverage when it comes to semiconductors, as even chips made overseas are mostly made and tested using equipment based on U.S. developments, he said.

“It’s not just what is physically exported from the US,” Mr Schoer said. “It can cover a significant amount of production because much of the semiconductor industry relies on U.S. technology.”

The global semiconductor industry, which experienced shortages and supply disruptions during the pandemic, may face additional disruptions, given Ukraine’s role in the semiconductor supply chain.

Stacy Rasgon, a senior analyst at Bernstein Research, said Ukraine is an important place to purify neon, a gas used in semiconductor production. Although the cost of neon was only a small fraction of what semiconductor companies pay, the potential risk of much of the cleaning capacity sounds somewhat sinister for an industry already struggling with a deficit, ”he said.

A spokesman for the Semiconductor Industry Association said the group was still assessing the possible implications of Russia’s and Ukraine’s role as materials 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 Statistics Organization.

Leave a Comment