(Bloomberg) — A trade group for major global technology companies and chipmakers warned that the U.S. request for semiconductor supply-chain data sends a “worrying signal” that could lead other governments to compel the sharing of similar information for other reasons.
The U.S. Department of Commerce in September asked companies in the semiconductor supply chain to fill out questionnaires seeking information pertaining to the ongoing chip shortage by Nov. 8. While the request is voluntary, Commerce Secretary Gina Raimondo warned industry representatives that the White House might invoke the Defense Production Act or other tools to force their hands if they don’t respond.
Washington’s request sparked controversies in Taiwan and South Korea, with some portraying the U.S. as demanding that companies hand over trade secrets. Chinese state media have also warned that the U.S. could use materials provided by Taiwan Semiconductor Manufacturing Co. and others to help American firms such as Intel Corp.
The “sensitive nature” of the request “is sending a worrying signal to global semiconductor industry stakeholders, including to other governments that may have an interest in compelling companies to share similar data, perhaps for less worthy purposes,” the Information Technology Industry Council said in a submission dated Nov. 8.
The data-collection approach may be less effective than other means, and industry concerns about providing the information are heightened “both by a lack of clarity about how this data will be used and who will have access to it, as well as by unclear messaging from the administration on these points,” according to the Washington-based group, which goes by ITI for short.
The group’s membership includes the world’s three top chipmakers: Intel, Samsung Electronics Co., and TSMC. Other members include Apple Inc., Amazon.com Inc. and Toyota Motor Corp.
Both TSMC and Samsung have responded to the Commerce Department’s request, although they said they had excluded client-specific information.
On Tuesday, Raimondo told reporters at a White House briefing that chief executives at a number of semiconductor companies including TSMC promised to send the information Commerce was asking for.
“It is laughable to suggest that it’s coercion, because it is voluntary,” Raimondo said. “It will increase transparency in the supply chain, which will cut down on bottlenecks. And that’s why they’re complying — their own choice.”
ITI said in its submission that the U.S. government should “remain focused on supporting and accelerating strategic investments in research, development, prototyping, manufacturing and advanced packaging capacity across the semiconductor supply chain ecosystem, with a particular focus on gaps in U.S. capabilities.”
More stories like this are available on bloomberg.com
©2021 Bloomberg L.P.
