The United States and the European Union have reaffirmed their commitment to combatting the dominance of Chinese legacy chips in the semiconductor industry by extending their cooperation for three more years. Following a two-day session of the Trade and Technology Council, both entities released a comprehensive 12-page joint statement outlining their strategies.
According to the statement, the collaborative efforts will revolve around sharing market intelligence, particularly concerning the prevalence of “non-market” policies and practices in China. European Commission Vice President Margrethe Vestager emphasized that the focus is on advancing solutions regarding legacy semiconductors.
US Commerce Secretary Gina Raimondo highlighted China’s substantial production share, estimated at 60%, in legacy chips utilized in various sectors like automotive, household appliances, and medical devices. Raimondo expressed concerns over the significant subsidization of the industry by the Chinese government, potentially leading to market distortions.
To address these issues, the Commerce Department initiated a survey to evaluate market distortions, with the EU planning a similar exercise. The intention is to collaborate closely and exchange findings between the two parties.
Additionally, both partners have committed to conducting joint research to find alternatives to per- and polyfluoroalkyl substances (PFAS) in chips. These chemicals, known as “forever chemicals,” pose health risks as they do not readily degrade.
