Global semiconductor industry presents road to recovery

In the aftermath of the pandemic, the WSC is more committed than ever to ensure a global level playing field that is transparent, non-discriminatory, non-trade distorting and consistent with World Trade Organization (WTO) rules. In 2017, the Governments and Authorities Meeting on Semiconductors (GAMS) from the participating regions agreed on the GAMS Regional Support Guidelines and Best Practices to ensure that competitiveness of companies and their products, not governmental intervention, are the principal drivers of innovation.

The WSC calls upon GAMS to assess & analyse support programmes against the Guidelines and Best Practices. Regular information sharing among governments & authorities ought to pave the way toward tangibly increased transparency.

Semiconductors are the fundamental building blocks for modern day information technologies such as 5G connectivity and infrastructure, artificial intelligence (AI), cloud computing, connected vehicles or big data. And as cybercrime knows no borders, the access to semiconductors with cryptographic solutions must be global.

The WSC Encryption Principles emphasise market access, non-discrimination, transparency, adoption of international standards, as well as open procedures & rules. The WSC calls on governments to continue the dialogue on encryption regulatory practices, assessing their conformity with the WSC Encryption Principles.

“2020 has confronted the semiconductor industry with unprecedented challenges to which we had to react quickly, thoroughly and in a well-thought-out manner,” said Jean-Marc Chéry, President of ESIA, who chaired the European delegation. “The pandemic has hit us all, but it has also demonstrated that international cooperation and dialogue are the way forward.”

The WSC remains committed to a tariff-free international trade for semiconductors and other high-tech products. Therefore, the WSC supports the continuous update of the WTO Information Technology Agreement (ITA) product scope to include new and evolving semiconductor technologies as well as its geographical expansion. The more countries participate in the ITA and its 2015 expansion, the freer technology can innovate.

In addition, the WSC addresses customs classification for semiconductors, including for new products and technologies. As semiconductors are widely traded and rely on global supply chains, their customs classification should be unambiguous and globally harmonised. In case of diverging classifications in different jurisdictions, clarifications at international level are required.

The WSC is an international forum that brings together industry leaders to address issues of global concern to the semiconductor industry. It is comprised of the semiconductor industry associations of China, Chinese Taipei, Europe, Japan, Korea, and the United States.