By Li Panpan

A coalition of US industry groups has written a coalition letter to push US Senate to drop an amendment that would extend the current ban on federal contractors using equipment and services from Huawei and ZTE to include three Chinese semiconductor companies, learned JW Insights from US media Inside Defense’s report on November 29.

The amendment bans federal contractors from using semiconductor products and services designed or produced by SMIC, ChangXin Memory Technologies (CXMT长鑫存储), or Yangtze Memory Technologies (YMTC长江存储).

The November 22 coalition letter said, “Left unaddressed, adding the covered semiconductors would harm federal agencies’ ability to procure the essential goods and services they need to promote our nation’s well-being while putting added financial pressure on businesses that are operating in an inflationary economy,” said the Inside Defense report.

The coalition is led by the U.S. Chamber of Commerce, and letter signees include the Aerospace Industries Association, Alliance for Digital Innovation, Competitive Carriers Association, CompTIA, CTIA, Information Technology Industry Council, National Defense Industrial Association, NCTA-The Internet & Television Association, NTCA-The Rural Broadband Association, Professional Services Council, Telecommunications Industry Association and USTelecom.

“Semiconductors are small subcomponents found in every system with electronics—such as a toaster containing a couple of semiconductors to a vehicle containing hundreds of semiconductors,” the letter says, “many businesses with international and domestic operations would be forced to halt their work providing key products and/or services to US agencies if the amendment is passed as written,” said the Inside Defense report.