News: China semiconductor trade association establishes work group with U.S. counterpart.
SHANGHAI (Reuters) – The Chinese Semiconductor Industry Association (CSIA), a major trade association for the Chinese chip industry, will set up a working group with its US-based counterpart, the organization said on Thursday.
The announcement on the CSIA website that led to a surge in the price of semiconductor stocks in China could signal closer collaboration between the two countries as they argue over the technology.
The CSIA announced in its office that it would form a joint working group with the Washington-based Semiconductor Industry Association (SIA), with 10 chip companies representing each side.
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 given.
The SIA did not respond to a request for comment outside of US working hours. The working group was not mentioned on the SIA website.
Shares in Semiconductor Manufacturing International Corporation, the leading chip manufacturer in mainland China, rose by as much as 12.4% after an announcement in Hong Kong.
Hua Hong Semiconductor, a competing Chinese manufacturer, gained 14% while Hang Seng Tech The index rose 5.2%, marking the largest percentage increase since January 20th.
China is the world’s largest buyer of semiconductors, but domestic chip production is low.
Beijing has long urged local governments and private companies to invest in the domestic chip industry, which has long lagged that of the US, Japan and Korea.
In the past decade, the government had set itself the goal of producing 40% of the chips it consumes by 2020. However, analysts say it fell far short of that target.
According to research firm ICInsights, of the $ 143 billion worth of chips sold in China in 2020, only $ 22.7 billion were produced in China and only $ 8.3 billion by companies headquartered in China.
China’s need to reduce its reliance on overseas chip companies became apparent in 2020 when U.S. sanctions against Shenzhen-based hardware maker Huawei Technologies Co. Ltd prevented component sourcing and crippled the once booming smartphone business .
Meanwhile, both countries are facing a global chip shortage that has rocked the electronics industry as various automobile, smartphone and gadget manufacturers search for components for production.
Reporting by Josh Horwitz; Adaptation by Robert Birsel
Original Source © Reuters