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Scrutiny of US Chip Manufacturers
The House of Representatives’ China panel is summoning the chief executives of major U.S. chip manufacturers in an intensified scrutiny of companies with interests in China, reported the Financial Times.
Summons to Testify
This week, the panel sent letters to Intel, Nvidia, and Micron Technology, summoning their chief executives to testify before Congress, as per the report citing sources with knowledge of the matter. The move represents a shift by the committee, which has not previously held hearings with CEOs from any industry since its formation.
Rising Interest and Tensions
The bipartisan panel’s interest in hearings with these companies grew after the CEOs of Intel, Nvidia, and Qualcomm lobbied the U.S. government in preparation for semiconductor-related export curbs last year. Their active efforts to prevent additional semiconductor controls sparked the committee’s increased focus on their ties to China.
CEO Advocacy and Government Response
Intel’s Pat Gelsinger, Nvidia’s Jensen Huang, and Qualcomm’s Christiano Amon visited the White House in July last year to dissuade officials from tightening restrictions on cutting-edge semiconductor exports. Despite these efforts, the U.S. implemented new updates to export restrictions in October 2023, curtailing the sale of chips, such as the A800 and H800 by Nvidia, for the Chinese market as part of efforts to hinder China’s access to advanced semiconductor technology.
Reactions and Ramifications
The move to summon CEOs for testimony is expected to put U.S. companies with interests in China on edge as they come under the congressional spotlight, particularly against the backdrop of the upcoming presidential election where China is anticipated to be a focus. Nvidia’s CEO Jensen Huang has expressed the company’s efforts to ensure compliance with U.S. export restrictions when supplying new chips to the Chinese market.
