US think tank details new export control policy for semiconductor equipment industry

The U.S. think tank Center for Security and Emerging Technologies (CSET) recently released a report suggesting that semiconductor manufacturing equipment is one of the most important means for the United States to "strangle" China, but equipment manufacturers are trying to transfer production capacity outside the United States based on normal business considerations. This trend will weaken the effectiveness of the U.S. export ban.

The CSET report found that the top three US equipment manufacturers, Applied Materials, KLA and Lam Research, are increasing their overseas production capacity, and the existing Wassenaar mechanism is unlikely to meet export control requirements for semiconductor manufacturing equipment.

CSET recommends that the United States should develop a new multilateral export control coordination mechanism and attract equipment manufacturers to return by investing in local wafer fabs. In addition, CSET also recommends relaxing restrictions on high-tech immigration to attract equipment industry talents from East Asia to work in the United States and providing tax incentives to equipment manufacturers.