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    Breaking News

    SEMI Welcomes Efforts to Reduce US-China Trade Tensions

    Both parties are planning talks over the course of 90 days to address current frictions.

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    12.06.18
    SEMI, the global industry association representing the electronics manufacturing supply chain, applauded the US and China for agreeing to take the first steps to reduce trade tensions. The US plans to delay tariff increases on $200 billion worth of Chinese imports, China has vowed to increase US market access, and both parties are planning talks over the course of 90 days to address current frictions.
     
    “Everyone – businesses and consumers alike – rely on devices powered by semiconductors,” said Ajit Manocha, president and CEO of SEMI. “Tariffs on these products threaten jobs, stifle innovation, curb growth, and compromise US competitiveness.”
     
    With intellectual property critical to the semiconductor industry, SEMI strongly supports efforts to better protect valuable IP. However, these tariff increases will ultimately do nothing to change China’s trade practices. SEMI has long supported efforts to reduce and ultimately end trade tensions between the U.S. and China.
     
    “While this is the first step, it is encouraging to see Presidents Trump and Xi committed to working together,” Manocha said. “We look forward to continued negotiations that produce an agreement that not only removes tariffs altogether but also satisfactorily addresses bilateral economic concerns.”
     
    The semiconductor industry relies heavily on international trade. Since the tariffs have been in force, companies in the semiconductor industry have faced higher costs, greater uncertainty, and difficulty selling products abroad.
     
    Since action against China was announced in March, SEMI has engaged with policymakers, submitting written comments and offering testimony on the importance of the free trade to the industry as well as the damaging effects of the China tariffs. SEMI estimates that these tariffs will cost semiconductor companies more than $700 million annually.
     
    Last month, SEMI issued “10 Principles for the Global Semiconductor Supply Chain in Modern Trade Agreements,” calling for their adoption in existing and new trade deals, including a U.S.-China framework.
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