The semiconductor industry continues its expansion to every corner of the globe, advancing and enriching the lives of people the world over. Free and open international trade is a primary engine of global growth and development, and continues to be a principal goal of SIA’s policy agenda. Learn more about the global semiconductor value chain here.
Increasing market access internationally and removing non-tariff barriers
Upholding strong anti-dumping laws and effective anti-dumping remedies
World Semiconductor Council (WSC)
SIA has successfully pursued many key policy objectives through participation in the World Semiconductor Council (WSC). The WSC is composed of executives from SIA members companies, as well as counterparts in China, Chinese Taipei, Europe, Korea, and Japan. [DOWNLOAD THE MAY 2018 WSC JOINT STATEMENT]
The Governments/Authorities Meeting on Semiconductors (GAMS) is comprised of officials from the U.S. Government and officials representing all WSC regions. It convenes once a year to receive the WSC’s recommendations and take action.
Since its inception in 1996, the WSC has worked to advance a number of trade issues, including:
Support for intellectual property protection
Full transparency of government policies and regulations
Non-discrimination for foreign products in all markets
Voluntary and industry-led standards
An end to investment restrictions tied to technology transfer requirements
Zero duties on semiconductor products, including multi-chip packages (MCPs) and multi-component integrated circuits (MCOs)
Additionally, the WSC leads an active environmental program. Our goal is to support sound, scientifically based, positive environmental policies and practices.
Specific projects include PFC emission reduction, energy savings, chemical management, and quantitative targets. We have met or exceeded our targets every year. On energy savings, the WSC is actively supporting cooperation and the sharing of information among members to foster the efficient utilization of energy resources. Chemical management is also a key focus of WSC efforts – specifically in the areas of chemical risk assessment and pollution prevention.
Ensuring Full Transparency of Government Support in the Semiconductor Sector
SIA seeks to foster transparency around China’s IC industry support measures with the goal of ensuring government policies and investments are market-based, non-discriminatory, transparent, and consistent with international commitments and trade rules. SIA works with international allies to raise attention to market distorting aspects of China’s industrial policy and promote market-driven approaches. The WSC, along with the governments/authorities of the six WSC members, has endorsed a set of best practices known as Regional Support Guidelines and Best Practices. These best practices include a notification and consultation provision for relevant programs in the semiconductor sector.
SIA also supports WTO discussions regarding developing stronger rules on industrial subsidies and SOEs to promote a more level playing field for our industry.
Eliminating Tariffs on Semiconductors and ICT Products
SIA has strongly supported deals that provide tariff-free treatment for semiconductors – most notably the Information Technology Agreement (ITA), and its recent expansion in 2015. These agreements have eliminated tariffs on virtually all information technology goods in all major world markets, including advanced semiconductors like multi-chip packages (MCP) and multi-component semiconductors (MCOs). This has resulted in tariffs savings for the semiconductor industry of $150-300 million annually.
To maximize the benefits of ITA expansion, SIA is encouraging non-ITA members to join the expanded ITA. Key markets that have not yet joined the ITA or ITA expansion include Vietnam, Indonesia, Pakistan, Argentina, Kenya, Brazil, and Mexico, among others.
As semiconductor technology continues to advance, SIA will also work to ensure that new and innovative semiconductor products remain duty-free.
As one of the United States’ largest exporting industries, SIA is a strong advocate of expanded trade liberalization, and actively supports the modernization and negotiation of new trade agreements to include disciplines that strengthen digital trade and combat the rising trend of digital nationalism that threatens the digital economy. SIA has advocated for semiconductor industry priorities in the Trans-Pacific Partnership (TPP), Transatlantic Trade and Investment Partnership (TTIP), Environmental Goods Agreement (EGA), Trade in Services Agreement (TiSA), expansion of the WTO Information Technology Agreement (ITA), the WTO Trade Facilitation Agreement (TFA), and modernization of the North American Free Trade Agreement (NAFTA).
The U.S. semiconductor industry is the worldwide leader with nearly half of global market share.
The industry directly employs over 307,000 people in the U.S. and supports more than 1.7 million additional U.S. jobs.
Semiconductors are a top U.S. export after refined oil, crude oil, natural gas, and civilian aircraft.
The U.S. industry invests about one-fifth of revenue in R&D on average, among the most of any sector.