Report: Europe claims US using Chinese sanctions unfairly

December 28, 2020 // By Peter Clarke
Report: Europe claims US using sanctions unfairly
European leaders have accused the US government of using its Chinese sanctions regime to deny European firms access the Chinese market while giving exceptions to US firms, writes the FT.

The account cited unnamed European technology executives and diplomats as its sources.

Over the last couple of years the United States government has been ramping up a regime that requires special licenses from the US to export products and services with significant US intellectual property content to Chinese companies on an "entity list." Communications equipment company Huawei and foundry SMIC have been targeted in particular (see US government reinforces Huawei chip embargo).

As most chip production lines include some US chip manufacturing equipment and all leading-edge ICs are designed using tools from Cadence and Synopsys, the US government expects the whole world to comply with its embargo and this has been the case.

Now European executives are pointing out that US companies are being granted licenses to supply Huawei with some technologies while European companies are not.

It is notable that both Intel and Qualcomm have been given licenses to supply Huawei (see Intel granted licence to supply Huawei and Qualcomm cleared to supply Huawei with 4G phone chips).

The US has granted licenses to Samsung (South Korea) and Sony (Japan) to supply display and image sensor products (see Report: Samsung gets license to supply Huawei with displays). But Europe has so far not been granted any such licenses. STMicroelectronics has a significant design collaboration with Huawei that is impacted by the embargo (see ST deal won't shield Huawei, but could help).

Also ASML Holding NV, a monopoly supplier of extreme ultraviolet lithography chip making equipment has opted not to export such equipment to China (see US lobbied hard to deny China EUV lithography). One result is that US firm Applied Materials is set to overtake ASML as the largest supplier of chip making equipment (see Applied set to replace ASML as top chip manufacturing equipment vendor).

European political institutions have become increasingly concerned about Europe's dependence on the US and is seeking – just as China is – to reduce dependence on US intellectual property (see Europe will try to rebuild semiconductor capability using pandemic recovery funds).

Related links and articles:

Intel granted licence to supply Huawei

Qualcomm cleared to supply Huawei with 4G phone chips

Report: Samsung gets license to supply Huawei with displays

US government reinforces Huawei chip embargo

ST deal won't shield Huawei, but could help

US lobbied hard to deny China EUV lithography

Applied set to replace ASML as top chip manufacturing equipment vendor

Europe will try to rebuild semiconductor capability using pandemic recovery funds


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