Global semiconductor industry leaders have reached agreement on policy proposals designed to strengthen the chip industry, including a plan that would grant duty-free status to next-generation semiconductors. Under this proposal, newly developed semiconductors would be included in the Information Trade Agreement (ITA), which provides duty-free treatment of certain information technology products, including semiconductors.
The ITA expansion proposal was made at the recent World Semiconductor Council (WSC), a global body of semiconductor industry executives from China, Chinese Taipei, Europe, Japan, Korea and the United States. The council meets annually to address issues concerning the semiconductor industry, according to the Semiconductor Industry Association (SIA).
An expanded ITA would generate an estimated $1.4 trillion in annual world trade, the WSC said. It would provide the first opportunity to include newly developed products in the information technology sector since 1996, when the ITA was originally concluded.
WSC leaders also made a series of other proposals including:
• Developing a set of actions to combat semiconductor counterfeiting.
• Strengthening intellectual property (IP) rights and protections via analysis of issues related to utility model patents, patent quality, abusive patent litigation, and trade secrets.
• Working with national governments to implement encryption standards and regulations to eliminate problematic practices.
• Expressing the need for all governments and industries to maintain market-oriented practices and make sure that success is based on real competitive value.
• Affirming the industry’s commitment to improving export control processes and procedures.
• Maintaining progress toward reducing the industry’s PFC emissions.
• Asserting the critical importance of trade facilitation in achieving free and open markets, reducing barriers to trade, and improving business conditions that provide significant benefits to governments, industry, and consumers alike.
The recommendations were included in the 2014 WSC Joint Statement.
“The initiatives presented in the 2014 Joint Statement represent a significant step toward enacting policies that encourage open communication, intergovernmental cooperation, and fair competition throughout the world,” said Ajit Manocha, 2014 WSC chairman of the U.S. delegation and former CEO of GLOBALFOUNDRIES.
Industry representatives from the six regions will deliver the recommendations to an annual meeting of their governments, called the Governments and Authorities Meeting on Semiconductors (GAMS), which will take place in Fukuoka, Japan in October.
The GAMS meeting is an opportunity for the chip industry to convey the importance of implementing the recommendations and explore areas of mutual interest with governments and authorities worldwide.
“The semiconductor industry is a key driver of economic growth and innovation in the United States and around the world,” said Brian Toohey, SIA president and CEO. “We must work proactively and cooperatively with our international counterparts to ensure we have fair, open, and transparent access to international markets,” he said.
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