In a move which signifies a more cooperative relationship
between China and other major semiconductor powers the China
Semiconductor Industry Association (CSIA) is set to join the World
Semiconductor Council (WSC).?
The CSIA and the WSC yesterday signed a memorandum of
understanding in Beijing which invites the Chinese body to apply
for membership of the WSC.
The WSC is composed of industrial organizations from all major
semiconductor manufacturing and consumption regions in the world
except for China which is the largest consumer of semiconductors
and the fastest growing manufacturer of the product.
"The accession of the CSIA into the WSC will promote exchanges
and build a mutually beneficial relationship between the two
organizations," said Yu Zhongyu, chairman of the CSIA.
He expected the Chinese government to ratify the accession
agreement "very soon."
The CSIA has been talking with the WSC since 2001 about council
membership. But the relationship between the Chinese semiconductor
industry and WSC members has been rocky.
In 2003 the WSC and the US Semiconductor Industry Association
(SIA) launched complaints against China's value-added tax (VAT)
preference policy to semiconductor makers in China. The policy,
drafted in 2000, said the actual VAT burden on semiconductor
manufacturers should not exceed 3 percent.
Since the VAT rate on imported products was 17 percent the WSC
and the SIA believed it was unfair on imported products although
China had a different interpretation on the actual VAT burden and
in 2004 scrapped the policy.
The US semiconductor industry also complained that the rapid
growth in manufacturing capacity in China would lead to a global
excess in production and called on the US government to set
barriers on semiconductor manufacturing equipment exports to
China.
The accession of the CSIA into the WSC will enhance cooperation
in both the global and Chinese semiconductor industries.
"The CSIA's active participation will strengthen the WSC," said
Brian Halla, WSC and SIA chairman. "The WSC is 10 years old and
now, with the participation of the CSIA, the next 10 years will be
more exciting for the semiconductor industry," he added.
Halla said that CSIA membership of the WSC would play a
fundamental role in China's efforts to build an innovative
society.
SIA President George Scalise said CSIA member companies would
have access and contribute to the "International Technology Roadmap
for Semiconductors," a collective effort by top semiconductor
scientists and engineers to identify the technology trends in the
industry over the next 15 years. Chinese companies could also learn
from the experience of leading global counterparts in environmental
protection.
The accession requires China to provide a transparent policy on
decision-making, give equal treatment to both domestic and foreign
companies and strictly observe intellectual property and
environmental protection.
(China Daily June 16, 2006)