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Europe Chip Makers Says they will Continue to Operate Locally Despite China Chip Export Ban

Yusuf Balogun
Yusuf Balogun
Yusuf is a law graduate and freelance journalist with a keen interest in tech reporting.

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In a bid to curb the economic effect of the United States’s restrictions on the export of advanced chips to China, innumerable Europe chip makers have disclosed today that they will continue to operate locally even without minding the ban. Recently, the United States announced a chip export ban to China over security and military threats.

The Financial Times recently reported that STMicroelectronics, Infineon, and NXP Semiconductors held an executive roundtable special meeting at the Munich Electronics Show on the 14th and declared their commitment to upholding the United States export control of China’s advanced semiconductors while stating that they have no plans to withdraw locally.

Speaking at the executive roundtable meeting, Jean-Marc Chery, the CEO of STMicroelectronics, said about 30% of the company’s overall revenue comes from China, as they can not give up the market; therefore, they will continue to provide support.

“China accounts for about 30% of the company’s total revenue. It is a market that we do not want to give up. We want to continue to provide support.” “We only hope that the world can provide a stable environment. We can adapt to changes. , but if it changes every six months, it will be very difficult to adjust.”

As most of the chips exported to China are mature process chips, European equipment suppliers like ASML and chip producers are less impacted by Washington’s export ban. Still, they are nonetheless concerned that the geopolitical uncertainty surrounding the conflict between the United States and China may affect how the Chinese market operates.

However, NXP CEO Kurt Sievers said on the sidelines that although China’s business is not affected by the new regulations, he has warned American employees that they should suspend communication with Chinese customers about semiconductor manufacturing information.

Meanwhile, it should be noted there have been reports that the US and the Netherlands are close to reaching a preliminary agreement to regulate the export of equipment for 10-nanometer process chips. However, once the United States urged that regulations should be extended to the 14nm process, the Netherlands’ inclination to cooperate decreased. Gina Raimondo, the secretary of commerce for the United States, pointed out that it would take six to nine months to reach the agreement.

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