Semiconductor Leaders & Governments To Strengthen Global Industry
Chips at heart of mobile computing, automobile electronics and communications are poised to be included in free trade agreements
Representatives of the global semiconductor industry delivered recommendations to government authorities at the 13th annual Governments/Authorities Meeting on Semiconductors (GAMS).
The proposals regarded a number of international trade issues that will have a long-lasting impact on the semiconductor, electronics and technology industries across the U.S. and the globe.
GAMS is made up of government officials and authorities from China, Chinese Taipei, the European Union, Japan, Korea and the United States. They meet annually to work with industry leaders to address issues of global importance to the semiconductor industry.
"The GAMS process is a shining example of the semiconductor industry's unparalleled tradition of close cooperation with governments worldwide," says Brian Toohey, SIA president and CEO.
"No other industry has a similar mechanism for bringing together industry and government leaders from across the globe to promote fair trade practices and open competition. This year's meeting helped facilitate the adoption of sound policies to open markets, increase consumers' access to semiconductor technology, strengthen market-based competition and protect the environment," he adds.
Representatives from participating governments/authorities made significant progress on several key trade policy initiatives, including consensus among the majority of the delegations on a multi-component (MCO) integrated circuit definition.
As consumers demand ever more sophisticated integrated circuit performance, semiconductor designers and manufacturers include additional electronic components inside a package to increase functionality, which is known as an MCO.
The definition agreed will serve as the basis to provide these products with tariff-free treatment in the future. Currently all semiconductors except MCOs enjoy duty-free treatment, which is critical in maintaining the pace of technological progress in this consumer-driven industry. The realisation of duty-free treatment for MCOs in short order will ensure consumers reap the full benefits of innovation.
Earlier this year in May, industry leaders reached consensus on their policy recommendations during the 16th annual meeting of the World Semiconductor Council (WSC) in Saratoga Springs, N.Y. Eighteen CEOs from six associations "“ representing over 90 percent of the worldwide semiconductor industry "“ participated in this year's WSC meeting.
GAMS representatives also made significant progress addressing the following substantive matters: encryption standards and regulation; environment, health and safety (EHS) provisions; regional stimulus issues; protection of intellectual property; anticounterfeiting; expansion of the Information Technology Agreement (ITA); and export/import regulatory restrictions, among others.
"The GAMS process is vital to the growth of both the U.S. and global semiconductor industry and, by extension, the broader technology industry and overall economy," concludes Toohey. "Working together, the semiconductor industry will continue to create jobs, drive economic growth, and develop the technologies needed to build a brighter future."
