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

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

Kevin Wolf, a companion in worldwide commerce at Akin Gump who labored in export controls beneath the Obama administration, mentioned the White House might tailor its use of export controls to focus on sure strategic sectors, for instance corporations within the aerospace or maritime trade, whereas bypassing merchandise utilized by the Russian populace, like washing machines.

“They’re making it clear they’re not trying to take action that harms ordinary Russians,” Mr. Wolf mentioned.

Andy Shoyer, co-lead of world arbitration, commerce and advocacy for Sidley Austin, mentioned the restrictions appeared more likely to give attention to semiconductors and semiconductor tools. The novel export controls that the United States wielded in opposition to Huawei have a strong attain in relation to semiconductors, since even chips made overseas are largely manufactured and examined utilizing equipment primarily based on American designs, he mentioned.

“It’s not just what’s physically exported from the U.S.,” Mr. Shoyer mentioned. “It could encompass a substantial amount of production, because so much of the semiconductor industry relies on U.S. technology.”

The international semiconductor trade, which has been roiled by shortages and provide chain disruptions all through the pandemic, might face extra disruptions given Ukraine’s position within the semiconductor provide chain.

Stacy Rasgon, a senior analyst at Bernstein Research, mentioned Ukraine was an vital location for the purification of neon, a fuel used within the manufacturing of semiconductors. While neon prices have been only a tiny fraction of what semiconductor corporations pay, “potentially putting a significant fraction of purification capacity at risk sounds somewhat ominous for an industry already struggling with shortages,” he mentioned.

A spokesman for the Semiconductor Industry Association mentioned the group was nonetheless evaluating potential impacts associated to Russia’s and Ukraine’s roles as supplies suppliers. But he mentioned Russia was not a major direct client of semiconductors, accounting for lower than 0.1 % of world chip purchases, in accordance with the World Semiconductor Trade Statistics group.



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