The review, called a Section 232 review, could result in import restrictions.
The SIA, which has long fought for free trade in ICs, and whose members export 80% of their output, is not supportive of Ross’
“Semiconductors are one of our shining industries, but they have gone from substantial surplus to the beginnings of a deficit,” says Ross. “China has a US$150 billion programME to take that much further between now and 2025. That is scary.”
“So while we fully support efforts to ensure trade in semiconductors is fair and market-based, we do not believe a Section 232 investigation is the right tool to be applied to our industry” says SIA President John Neuffer.
Neuffer said the US chip industry should work with the US government to get China to develop its chip industry in a market-driven way.
Neuffer suggests that the US government should help the US chip industry by allowing immigration, taking the tax penalty off overseas earnings, increase R&D spending and improve US education.
“The Chinese are determined to build a semiconductor industry,” says Neuffer, “I think the strongest pillar of any strategy going forward has to be our government helping to create an environment where we can pedal faster and stay as far ahead as possible.”