Skip to content
Resilic Logo
  • Solutions
        • Solutions

          • EventWatchAI
          • RiskShield
          • Multi-Tier Mapping
          • CommodityWatchAI
          • Supplier Assessment Library
        • Data Marketplace

          • Autonomous AI Mapping
          • Resilinc Disruption Vulnerability Index
          • R Score
          • Supplier Screening
          • Application Programming Interface (API)
        • Services

          • Advisory Services
          • Data and Intelligence Services
        • Elevate your Supply Chain Risk and Resiliency Program

          Schedule Demo
  • Use Cases
        • By Industry

          • Aerospace, Defense, Government
          • Automotive and Industrial
          • Healthcare & Life Sciences
          • High-Tech & Semiconductor
        • By Role

          • Supply Chain Risk & Resiliency Program Managers
        • By Business Need

          • Business Continuity Planning
          • Uyghur Forced Labor Prevention Act (UFLPA)
        • Elevate your Supply Chain Risk and Resiliency Program

          Schedule Demo
  • Resources
        • Learning Center

          • Blog
          • Case Studies
          • Event
          • On Demand Webinars
          • White Paper & Reports
        • Connect

          • Schedule Demo
          • Request Pricing
        • Special Reports

        • Special Report
        • Find valuable resources for managing supply chain disruptions in our Special Reports section.

        • Elevate your Supply Chain Risk and Resiliency Program

          Schedule Demo
  • Company
          • About Resilinc
          • Partners
          • Careers
          • Resilinc In the News
          • Press Releases
          • The Risk Game
        • Elevate your Supply Chain Risk and Resiliency Program

          Schedule Demo
  • Pricing
  • Contact
Login
Schedule Demo
Resilic Logo
  • Solutions
    • Solutions
      • EventWatchAI
      • RiskShield
      • Multi-Tier Mapping
      • CommodityWatchAI
      • Supplier Assessment Library
    • Data Marketplace
      • Autonomous AI Mapping
      • Resilinc Disruption Vulnerability Index
      • R Score
      • Supplier Screening
      • Application Programming Interface (API)
    • Services
      • Advisory Services
      • Data and Intelligence Services
  • Use Cases
    • By Industry
      • Aerospace, Defense, Government
      • Automotive & Industrial
      • Healthcare & Life Sciences
      • High-Tech & Semiconductor
    • By Role
      • Supply Chain Risk & Resiliency Program Managers
    • By Business Need
      • Business Continuity Planning
      • Uyghur Forced Labour Prevention Act (UFLPA)
  • Resources
    • Learning Center
      • Blog
      • Case Studies
      • Events
      • On Demand Webinars
      • White Papers & Reports
    • Connect
      • Schedule Demo
      • Request Pricing
    • Special Reports
  • Company
    • About Resilinc
    • Partners
    • Careers
    • Resilinc In the News
    • Press Releases
    • The Risk Game
  • Pricing
  • Contact
  • Login
  • Schedule Demo
Menu
  • Solutions
    • Solutions
      • EventWatchAI
      • RiskShield
      • Multi-Tier Mapping
      • CommodityWatchAI
      • Supplier Assessment Library
    • Data Marketplace
      • Autonomous AI Mapping
      • Resilinc Disruption Vulnerability Index
      • R Score
      • Supplier Screening
      • Application Programming Interface (API)
    • Services
      • Advisory Services
      • Data and Intelligence Services
  • Use Cases
    • By Industry
      • Aerospace, Defense, Government
      • Automotive & Industrial
      • Healthcare & Life Sciences
      • High-Tech & Semiconductor
    • By Role
      • Supply Chain Risk & Resiliency Program Managers
    • By Business Need
      • Business Continuity Planning
      • Uyghur Forced Labour Prevention Act (UFLPA)
  • Resources
    • Learning Center
      • Blog
      • Case Studies
      • Events
      • On Demand Webinars
      • White Papers & Reports
    • Connect
      • Schedule Demo
      • Request Pricing
    • Special Reports
  • Company
    • About Resilinc
    • Partners
    • Careers
    • Resilinc In the News
    • Press Releases
    • The Risk Game
  • Pricing
  • Contact
  • Login
  • Schedule Demo
  • Solutions
    • EventWatchAI
    • RiskShield
      • Supplier Assessment Library
      • Business Continuity Planning
    • Multi-Tier Mapping
      • Resilinc Supplier Network
    • Autonomous AI Mapping
    • CommodityWatchAI
    • Data Products and Offerings
    • Supply Chain Risk and Resiliency
      • Advisory Services
      • Data and Intelligence Services
  • Industry
    • Aerospace and Defense
    • Automotive & Industrial
    • Healthcare & Life Sciences
    • High-Tech & Semiconductor
  • Pricing
  • Resources
    • Learning Center
    • Special Reports
    • Events
    • Developer API
  • Company
    • About
    • Partners
    • News
  • Contact
  • Blog
  • Careers
  • Demo
  • Login
  • Customer Hub

Home / Blogs / How Biden’s chip export restrictions will impact semiconductor supply chains

How Biden’s chip export restrictions will impact semiconductor supply chains

How Biden’s chip export restrictions will impact semiconductor supply chains

Oct 25, 2022

Resilinc Editorial Team

Geopolitics, Semiconductor, Supply chain mapping

“Biden Wages Global Campaign on Chinese Technology.” “Biden Is Now All-In on Taking Out China.” “China is under siege.” These and other ominous mid-October headlines point to the deadly serious nature of the new and expanding restrictions on technology exports to China imposed by the Biden Administration and the U.S. Congress in the CHIPS Act.

The U.S. effort to constrain China’s access to advanced semiconductors and the tools to produce them is aimed at reducing the country’s growing prowess in AI and its military capabilities such as stealth and hypersonic weapons and cyberwarfare tools. “Progress in chip manufacturing … now … define[s] national power—much the same way nuclear tests or precision-guided missiles” did during the Cold War, writes veteran New York Times national security correspondent David E. Sanger.

Even before the CHIPS Act passed in July, export controls had multiplied under both Trump and Biden—with the number of Chinese firms on the Entity List growing from 130 to 532 from 2018 to 2022, according to Foreign Policy. (Firms on the list must acquire licenses to import U.S. goods.) Under the CHIPS Act, semiconductor makers who accept subsidies from the law’s $76 billion fund must agree not to invest in Chinese semiconductor production—except for legacy ≥ 28-nm chips—for 10 years. This restriction incensed the Chinese semiconductor industry and government, but it has been followed by tough executive actions such as the September order to AMD and Nvidia (which accounted for 95% of AI chip sales in China, according to Fubon Securities Investment Services) to cease exporting advanced chips to China. In the most recent regulatory filing, the Commerce Department’s Bureau of Industry and Security initiated new export controls on advanced chips and other technology applicable to supercomputers.

U.S.-allied countries such as Japan, Korea and the Netherlands that are vital players in the semiconductor value chain have resisted or opposed U.S. pressures to cut off tech exports to China. But because U.S.-based firms dominate key links in the value chain—such as electronic design automation (EDA)—and because the U.S. has invoked the foreign-direct product rule which effectively prohibits companies worldwide from supporting advanced chip design in China—the U.S. is exercising “chokepoint control [and] actively strangling large segments of the Chinese technology industry,” writes Gregory C. Allen, the AI governance expert at Center for Strategic and International Studies (CSIS).

Many experts forecast long-term unintended consequences from this policy—most significantly, that China will move more quickly to scale up its domestic advanced chip design and production capabilities. And by acting unilaterally, the U.S. may be undercutting its ability “to enroll a broad coalition of states” in its efforts to deter China, according to Jessica Chen Weiss, a Cornell professor and former state department official quoted by the New York Times.

But for OEMs in virtually every industry, these technology security policies will likely impact supply chains more directly and sooner than geopolitical issues will manifest. “Many American firms—as well as European, Japanese, South Korean and Taiwanese companies—will get caught in the crossfire,” Nick Marro, lead analyst for global trade at the Economist Intelligence Unit told SCMP. “In the longer term, the loss of foreign inputs in China’s tech supply chains could also lead to [additional] costs, while minimising product and service choice in ways that affect the tech sector’s competitiveness and productivity.”

Allen from CSIS avers that China’s fast-growing semiconductor fabrication industry—which now produces 16 percent of global chips, behind only Korea and Taiwan—may concentrate more on chips larger than 28-nm. While not the focus of U.S. strategic concerns, these legacy chips are still needed by many OEMs, especially in aerospace and automotive and by makers of low-tech appliances such as washing machines. “The current global semiconductor supply chain crisis has demonstrated that even shortages of less advanced chips can be economically devastating,” writes CSIS’s Allen. And China may well leverage its growing position in legacy chips to retaliate.

Drawing on Resilinc’s extensive supply chain database, the Resilinc Risk Analysis Team has issued a Special Report on the U.S. Chip Ban. Among other key conclusions, the report underscores the wide range of industries that will be potentially affected by turmoil in the semiconductor industry. The list extends beyond the most obvious segments such as consumer electronics, biotech, and telecom to include agribusiness, construction, cosmetics & skincare, oil and gas, power & energy, and many others.

The report recommends companies take steps such as:

  • Map high-tech and semiconductor sites and suppliers based in China.
  • Ensure backup sites outside of China are available.
  • Qualify suppliers with advanced technologies and high dependency on Chinese markets (in case additional categories are covered)
  • Monitor commodities originating in China for any retaliatory actions or export restrictions
  • Collaborate with suppliers to invite transparent communication about their dependence on China-based customers, suppliers, investors, and government entities
  • Accelerate plans for China + 1 for all high revenue impacting product

 

 

 

Resilinc’s Special Report: US Chip Tech Ban - Top Challenges for The Semiconductor Industry

Resilinc Special Report

US Chip Tech Ban - Top Challenges for The Semiconductor Industry

Learn more in Resilinc’s Special Report about the US chip restrictions on China and their impact on the semiconductor supply chain.

Download Now

Recent Posts

Rethinking Black Swan Events for Modern Supply Chain Risk Management

Q&A with 2023 Women in Supply Chain Winner Beth Cook

As the DSCSA Compliance Date Nears, are Pharmaceutical Supply Chains Ready?

Top 5 Aerospace Industry Supply Chain Disruptions of 2023

Panama Canal Drought: Lower Water Levels, Higher Supply Chain Risk

China’s Export Restrictions on Germanium and Gallium  

4 Ways to Develop a Demand-Responsive Supply Chain

Top 10 Supply Chain Disruptions: 2023 Midyear Recap

About Resilinc

We’re the world’s leading supply chain monitoring, mapping, and resiliency solution. Over 100k organizations partner with us to take their SCRM programs from reactive to resilient.
Request Demo

Recent Blogs

Loading...
An image of a black swan amongst a group of white swans
Sep 25, 2023
5 MIN READ
Resilinc Editorial Team

Rethinking Black Swan Events for Mode...

Black swan supply chain events have been traditionally associated with improbable, rare, or unlikely events...
Black swan supply chain events have been traditionally associated with improbable, rare, or unlikely events...
SCRM Best Practices, Supply chain management, Supply Chain Resilience
Q&A with Resilinc's Beth Cook 2023 Women in Supply Chain Winner
Sep 19, 2023
5 MIN READ
Resilinc Editorial Team

Q&A with 2023 Women in Supply Chain W...

Supply & Demand Chain Executive just announced the Women in Supply Chain award winners—and Resilinc’s...
Customer success, Supply chain management
A variety of colorful pharmaceuticals.
Sep 12, 2023
3 MIN READ
Resilinc Editorial Team

As the DSCSA Compliance Date Nears, a...

Supply chain shortages have led to frustration at the pharmacy counter for many this year....
Healthcare, Human Health, Supply Chain Resilience
Read All Blogs

Who's in your supply chain?

Better visibility starts now

Email Now|Call Now|Chat Now

Receive our monthly NewsWatch digest

Subscribe
Resilinc Logo

Most Trusted, Cognitive Supply Chain Risk Management Platform

Solutions

Blog

Careers

Company

  • About
  • News
  • Events
  • About
  • News
  • Events

Resources

  • White Papers & Reports
  • Case Studies
  • On-Demand Webinars
  • White Papers & Reports
  • Case Studies
  • On-Demand Webinars

Follows Us

Facebook-f Twitter Linkedin

Sales: [email protected]
Support: [email protected]
Partnerships: [email protected]

Resilinc Logo

Most Trusted, Cognitive Supply Chain Risk Management Platform

Company

  • About
  • News
  • Events
  • About
  • News
  • Events

Resources

  • White Papers & Reports
  • Case Studies
  • On-Demand Webinars
  • White Papers & Reports
  • Case Studies
  • On-Demand Webinars
  • Solutions
  • Blog
  • Careers
  • Solutions
  • Blog
  • Careers

Follows Us

Facebook-f Twitter Linkedin

Sales: [email protected]
Support: [email protected]
Partnerships: [email protected]

© 2023 Resilinc Corporation. All rights reserved.

Data Security

Privacy Policy

Can Reshoring Stabilize the Semiconductor Supply Chain?

Learn more in our in-depth report about disruptions impacting reshoring growth, the semiconductor workforce gap, and actionable risk mitigation strategies.

           Download Now