Senior executives from Semiconductor Industry Association (SIA) member companies and other multi-national semiconductor companies around the globe have sent a letter to Chinese vice premiers Wang Yang and Ma Kai encouraging China to support duty-free coverage for semiconductor products in an expanded Information Technology Agreement (ITA). The ITA promotes fair and open trade by providing for duty-free treatment of certain information technology products, including semiconductors, but the list of covered products has not been updated since the ITA’s inception in 1996. “The inclusion of MCOs in an expanded ITA is very important to the global semiconductor industry, and is well-aligned with China’s IC sector development goals outlined in its 12th Five Year Plan” said Ian Steff, SIA’s vice president of global policy and technology partnerships. “Tariff-free treatment for all MCOs, regardless of end-application, as well as for other products that comprise the semiconductor supply chain, will fuel semiconductor design and manufacturing investments, reduce costs for consumers, promote exports, and strengthen overall IC sector development and growth worldwide”.
