[Asia Economy Reporter Cho Hyun-ui] The White House has informed the domestic semiconductor industry to prepare for export restrictions in the event that Russia invades Ukraine.
According to foreign media on the 19th (local time), officials from the White House National Security Council (NSC) recently told the Semiconductor Industry Association (SIA) that this could be "the worst aggression possibility since World War II."
The NSC stated to the SIA that it is ready to take unprecedented measures if Russia attacks Ukraine. An SIA official conveyed via email to member companies that "the NSC indicated that the Ukraine situation is 'exceptional' and that all options are being actively considered."
Regarding new export restrictions against Russia, the SIA sought clarity on the possibility of significantly expanding government authority to block shipments of foreign products, including broad export controls similar to those applied to North Korea and Iran financial sanctions, as well as measures like those imposed on China's Huawei.
A source told foreign media, "Ensuring that IT protection for employees in Russia is well maintained and preparing to halt exports to Russia could be part of the industry's preparation process in anticipation of Russia's invasion of Ukraine."
If new export sanctions against Russia are implemented, Russia could be cut off from access to global electronic products. Foreign media explained, "If the White House expands the 'foreign direct product rule' established by the Trump administration to block semiconductor supplies to China's Huawei, it could halt shipments of semiconductors, computers, home appliances, communication equipment, and other products made worldwide with U.S. technology."
The White House spokesperson declined to confirm whether the NSC and SIA had a call but stated, "We have made it clear that we are reviewing various options with allies and partners to ensure Russia pays a severe economic price if it invades Ukraine."
The SIA held a conference call with its members the previous day to detail the conversation with the NSC. A government affairs officer of the association said at the meeting, "Due to the possibility of broad export control measures, there could be unprecedented chaos," adding, "We are working to assess the ripple effects on the global supply chain."
The White House also held talks with the Semiconductor Equipment and Materials International (SEMI) the previous day regarding new export sanctions. A source said, "The association expressed concerns about the potential impact on U.S. technology during the call with the NSC."
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