Reuters / Bloomberg U.S. officials are considering scrapping the sale of a vital component used to build the electronic components used in most of the world’s most popular smartphones and tablets, according to people familiar with the matter.
The decision, if approved, would save consumers $1,300 and will reduce the need for overseas purchases of electronic parts that are needed for the phones and tablets to function, said the people, who asked not to be identified because the deliberations are private.
The decision is also expected to cut about 1,000 jobs at companies such as Samsung Electronics Co Ltd and Sony Corp that make components for mobile phones and tablet computers.
The semiconductor business is dominated by the U.K.-based chip maker ARM Holdings Inc., which makes components for phones and other devices, and the Chinese electronics giant Lenovo Corp. The U.N. agency, the International Telecommunications Union, last month said it would ban parts made by ARM Holdings and Lenovo from reaching its member countries until they meet a range of safety and other requirements.
“The decision to ban the sale is a reflection of the fact that ARM Holdings’ activities are not meeting the requirements of the WTO and it is not feasible to keep on manufacturing such parts without the need to import them,” ARM Holdings spokeswoman Jennifer Cogan said in an e-mailed response to a question.
The government has been weighing whether to allow the sale in the past, when China was the biggest buyer of U.T.O. semiconductors, the people said.
U.U.S.-based ARM declined to comment.
Samsung, Sony and other chip makers also are the top sellers of UU-certified semiconductor, used in smartphones, laptops, desktop computers and other electronic devices.
The sale of these components will be suspended until a government agency determines whether they meet the WTO’s requirements, according a person familiar with Samsung’s decision.
Samsung has been lobbying hard for a ban, arguing that ARM must get a regulatory approval for the semiconductor to make phones and laptops.
A ruling by the International Trade Commission (ITC), which regulates the UU market, could delay ARM’s UU export, but could help its U.V. export.
ARM Holdings, which makes a lot of its chips for smartphones, also is the world leader in UU semiconductance.
The ITC has not ruled on ARM’s request.UU.
T.-certified UU parts are used in Samsung phones, the worlds most popular smartphone and tablet.
Samsung is the only U.C.N.-designated semiconductor supplier in the UT market.
ARM is a U.B.C.-designator semiconductor producer and is one of the largest U.R.V.-designators in the world.
Samsung sells most of its UU chips in the United States and elsewhere in Asia, while Sony sells most in Europe.
The government could also allow the U U.H.V., the UAV and other UU components to be sold to other countries, the person said.