Monday, May 29, 2023

USMCA countries to plan regional chip production

Mexico, the United States and Canada will plan regional guidelines on the production of semiconductor chips to strengthen their supply chains.

This coordination will take place at the cabinet level and in the North American Competitiveness Committee under the treaty between the three countries (T-MEC).

To that end, sector executives are attending the North American Semiconductor Conference, which began this Thursday in Washington, DC, an event organized by the Semiconductor Industry Association (SIA) of the United States.

In this context, the US government has imposed increasingly tighter export controls on China, including, most recently, broad restrictions on semiconductors and extraordinary tariffs.

According to Mirian Technologies, these regulatory changes and possible retaliation from China could disrupt the global semiconductor supply chain and make it more difficult to source components for some products, including some from the company itself.

Cooperative activities in support of a sound economic environment that encourages production in North America, facilitates regional trade and investment, improves a predictable and transparent regulatory environment, and encourages faster movement of goods and service delivery throughout the region Will discuss and develop on. , and respond to market developments and emerging technologies.

Simultaneously, the US government has imposed export control restrictions on transactions with an increasing number of Chinese entities, adding them to the US Bureau of Industry and Security (BIS) Entity List.

A BIS export license is required to export, re-export, or transfer any product, software, or technology within a country that is subject to U.S. export control jurisdiction of those parts of the BIS Entity List.

Market state

According to SIA, the United States accounted for 46% of the global market for semiconductor designs in 2020, based on the headquarters of companies in the industry. It was followed by South Korea (19%), Japan (10%), Europe (10%), China (9%) and Taiwan (7%).

Going forward, in a report published in November 2022, SIA predicted that, if the status quo is maintained, the United States’ share in the same classification would drop to 36% by 2030, compared to China’s 23% and South will increase. Korea will stay at 19 percent.

The US Congress recently passed the CHIPS Act, which will allocate over $50 billion in public funds to encourage semiconductor companies to build manufacturing facilities in the United States.

Nation World News Desk
Nation World News Desk
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