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U.S. Semiconductor Association President: China is Our Largest Market, We can not be Absent

Update time : 2023-05-05 09:31:03

The Semiconductor Industry Association said U.S. semiconductor companies want to enter the Chinese market despite the U.S. government's "national security" concerns, according to Bloomberg.
"(China) is our largest market, and we're not the only industry making that claim," said John Neufeld, president and CEO of the Semiconductor Industry Association, in an interview with Bloomberg, "Our view is that we can't afford to be absent from the Chinese market. " .
Under the U.S. Chip and Science Act of 2022, Washington will provide more than $50 billion in industry subsidies to chip companies, inviting them to build plants in the U.S. Washington also offers them investment tax credits. The U.S. not only wants to create at least two manufacturing clusters of advanced process chips by 2030 through the subsidy program, but also hopes to curb the development of mainland China's chip industry as well as its economy. The subsidy program stipulates that companies receiving U.S. subsidies may not expand their advanced semiconductor capacity in mainland China by more than 5 percent in the next 10 years, and their existing general-purpose semiconductor capacity may not expand by more than 10 percent; if they conduct joint research or share technology licenses with "countries of concern" such as China, they must return the full amount of the subsidy.
Regarding the U.S. Chip and Science Act, according to Bloomberg, Newfield said he is optimistic that the U.S. government will be pragmatic in dealing with such obstacles to ensure the success of the chip program and that related companies can receive funding.
In addition, Goodrich, vice president of global policy at the American Semiconductor Association, also said, "We just want clear 'rules of the road' for what is a national security issue, and the U.S. government should have a clear definition and be transparent and predictable," according to the report. He complained that "frankly, we've been on a bit of a roller coaster over the last two administrations when it comes to national security and trade restrictions." "For semiconductor companies trying to develop five-year plans, not knowing what might happen in the next six months creates a lot of uncertainty and challenges."

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