Chinese, US Chip Trade Associations Team Up – Report

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Thaw in China/US relationship? Chip trade associations in China and United States reportedly announce joint working group

With the world continuing to experience the problems with the ongoing silicon shortage, two rival trade associations have announced a joint venture.

The Chinese Semiconductor Industry Association (CSIA), a major trade association for China’s chip industry, is to establish a working group with its US-based counterpart, namely the Semiconductor Industry Association (SIA).

This is what CSIA announced on Thursday, Reuters reported, and pointed out the development could signal closer co-operation between the two countries, despite a decade of mistrust and confrontation.

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Working group

Indeed, the launch of the working group comes amid speculation that the administration of US President Joe Biden may relax certain trade restrictions against Chinese semiconductor companies to ease a global shortage of chips.

According to China’s CSIA, it will form a joint working group with Washington-based Semiconductor Industry Association (SIA), with each side being represented by 10 chip companies.

The working group will meet twice a year to discuss issues such as intellectual property, trade policy and encryption.

The date of the first meeting and the companies involved were not specified.

The SIA did not respond to a request for comment, and its website made no mention of the working group, Reuters noted.

US action

The Biden administration has been ramping efforts to help car makers deal with chronic silicon shortage that is impacting production.

Last month US officials held meetings with automotive companies and suppliers to identify chokepoints and urged companies to work cooperatively to tackle the shortage.

President Joe Biden also signed an executive order on 24 February to tackle a number of pressing shortages for four critical products, including computer chips.

Earlier this week a US national security commission recommended the US Congress tighten up “choke points” on chip-making technology.