The chief executives of Intel Corp and Qualcomm Inc are reportedly planning to visit Washington next week to engage in discussions on China policy with U.S. officials. The purpose of the meetings is to address market conditions, export controls, and other factors impacting their businesses. However, it remains unclear which officials the executives will be meeting with.
Intel and Qualcomm declined to comment on the matter, while the White House did not immediately respond to requests for comment. Additionally, sources revealed that other semiconductor CEOs may also be present in Washington during the same period. The sources spoke on the condition of anonymity as they were not authorized to speak to the media.
In June, reports emerged that U.S. officials were considering tightening export rules pertaining to high-performance computing chips and shipments to Huawei Technologies Co Ltd. Intel and Qualcomm could potentially be affected by these regulations. Intel is preparing to release a new artificial intelligence chip that could be exported to China, while Qualcomm holds a license to sell chips to Huawei.
Potential tightening of export rules would particularly impact Nvidia
Last year, the Biden administration introduced comprehensive rules intended to impede China’s semiconductor industry while simultaneously providing substantial subsidies to the U.S. chip industry. The potential tightening of export rules would particularly impact Nvidia, as the company’s prominence in the AI chip market played a role in its market value surpassing $1 trillion earlier this year.
In recent years, the chip industry has received a warm reception in Washington, as policymakers and the White House aim to shift more production to the United States and its allies, reducing reliance on China. Intel CEO Pat Gelsinger and Qualcomm CEO Cristiano Amon have frequently engaged with government officials.
The upcoming meetings, which may include joint sessions between executives and U.S. officials, coincide with concerns among chip companies like Nvidia regarding the potential long-term loss of sales as tensions escalate between Washington and Beijing. The executives’ objective during these meetings will be to ensure that government officials understand the potential consequences of further restrictions on chip sales to China.
