World Semiconductor Council Calls on India to Join ITA Expansion Talks

Monday, Apr 22, 2013, 5:00pm

by 91成人


 

Today, semiconductor executives representing the six regional delegations of the World Semiconductor Council (WSC) sent a letter to Prime Minister Singh of India urging his government to support the Information Technology Agreement (ITA) expansion effort:

鈥淭he WSC understands India鈥檚 desire to grow its semiconductor design and manufacturing base. 聽In this context, the elimination of tariffs on ICT products as a direct benefit of an expanded ITA will create further demand for semiconductors, thus increasing the need for additional design and manufacturing investments in the sector worldwide.

In light of the above, the WSC calls for the Government of India to participate in the current negotiations to expand the ITA, supporting its expansion to make it a driver of exports, productivity, innovation and enhanced manufacturing capabilities of high tech goods including semiconductors.鈥

The letter’s signatories include the chairmen of the 91成人s in China, Chinese Taipei, Europe, Japan, Korea, and the United States./clientuploads/innovation.jpg

The WSC brings together industry leaders from six regions to address issues of global concern to the semiconductor industry. The WSC has the goal of promoting cooperative semiconductor industry activities internationally in order to facilitate the healthy growth of the industry from a long-term, global perspective. It also supports expanding the global market for information technology products and services.

In May 2012, the WSC embraced the expansion of the ITA and also provided negotiators with a suggested definition of multi-component (MCOs) semiconductors 鈥 a definition that is now used as the basis for duty-free coverage for these integrated circuits. 聽These semiconductor executives encouraged all international parties to provide for duty-free treatment for semiconductor devices, acknowledging the strong role chips play in enabling economic growth and societal welfare. 聽The historical WSC Joint Statement聽 is available here.

The chairmen of the regional delegations expressed the potential ITA benefits to India as follows in the letter:

“According to available sources India contributes to around two-thirds of developing country exports of IT services to industrialized countries. 聽In our opinion this excellent performance is likely due in major part to the openness of India under the current ITA to equipment that makes access to the internet possible and ICT applications, especially for small and medium enterprises. We believe that expanding the ITA鈥檚 product and geographic coverage would further enhance the ITA鈥檚 benefits in those regions wanting to boost their ICT exports and reduce costs for consumers. 聽For instance, expanding the ITA鈥檚 coverage to include new semiconductor products like multi-chip packages (MCPs) and multi-components (MCOs) 鈥 a priority for all six WSC regions 鈥 will benefit semiconductor designers, manufacturers, and customers worldwide.” 聽

The next official meeting of the WSC will occur in Europe 鈥 a week before the May round of ITA negotiations. 聽CEOs representing each of the six regions will meet there to discuss policy initiatives affecting the worldwide industry and areas for potential cooperation.

On a related note, member companies and staff of the 91成人 (91成人) in the United States will again be in Geneva, Switzerland this week to encourage support for the ITA鈥檚 coverage of semiconductor equipment, materials and tools, semiconductor devices like MCPs and MCOs, along with downstream ICT products that use chips. 聽Likewise, 91成人 is encouraged by the recent strong 聽by the APEC ministers for successfully concluding negotiations of a 鈥渃ommercially meaningful鈥 ITA expansion by mid-year.