US, EU Extend Collaboration On Chinese Legacy Chips

The United States and the European Union have pledged to extend their collaboration for three more years in identifying disruptions within the semiconductor sector, with a specific focus on mainstream “legacy” chips originating from China.

This commitment came at the conclusion of a two-day session of their Trade and Technology Council on Friday, resulting in a 12-page joint statement detailing the outcomes of the meeting.

According to the statement, the two partners will exchange market intelligence concerning “non-market” policies and practices, which they assert are prevalent in China.

They also plan to collaborate on proposed actions to mitigate distortions in the global supply chain.

Margrethe Vestager, Vice President of the European Commission overseeing EU technology policy, remarked that the EU and U.S. are advancing “the next steps” concerning legacy semiconductors.

Also Read: US, Mexico To Collaborate On Semiconductor Supply Chain Growth

At a news conference, U.S. Commerce Secretary Gina Raimondo highlighted that China currently produces approximately 60% of legacy chips, which are utilized in cars, household appliances, and medical devices, and is expected to maintain this production in the future.

Raimondo expressed concern about substantial subsidization of this industry by the Chinese government, which could lead to significant market distortion, underscoring the need for attention to this issue.

Raimondo also mentioned that the Commerce Department has initiated a survey to evaluate market distortion, with a similar exercise anticipated from the EU. They plan to share their findings.

Additionally, the two partners have agreed to collaborate on research to identify alternatives to per- and polyfluoroalkyl substances (PFAS) in chips. The “forever chemicals” do not readily break down and studies show they can harm human health.

Reuters