Heaptalk, Jakarta — US President Joe Biden has implemented a new policy tightening chip export restrictions to multiple countries, not solely China. Indonesia is among the countries affected by these restrictions.
Only close US allies are still allowed to import chips and chip-making equipment from the US. Indonesia, classified as a Tier 2 country, faces restrictions and is limited to a maximum of 50,000 graphics processing units (GPUs) per country between 2025 and 2027.
In response, some semiconductor and manufacturing industry players have complained. They are members of the Semiconductor Industry Association, which represents chip entrepreneurs, and SEMI, which represents chip manufacturing entrepreneurs.
Together, they sent a letter directly to Joe Biden dated January 13, 2025. In the letter, industry players highlighted the impact of the tightening measures on US companies.
“We understand these additional rules will more strictly control high-bandwidth memory without considering the impact on US companies. This will hand over market share to global competitors,” the letter said, as quoted by Reuters on Wednesday (01/15).
High-bandwidth memory is a crucial component for making advanced AI chips. It is produced by US and South Korean companies, and the latest rules will limit sales to China.
According to the association, the government did not consult with the industry despite the long-term impact. Industry players wrote, “Once again, these rules were developed without proper industry consultation or public comment opportunities, despite having long-term and significant impacts on the economy and internationally.”
US Commerce Secretary Gina Raimondo said the US is already a leader in the AI industry and is optimistic about maintaining its position. “The US now leads AI in AI development or AI chip design. We need to keep it that way,” Raimondo concluded.
