A chip manufacture machine Photo: VCG

The China Semiconductor Industry Association (CSlA) said on Thursday that it firmly supports both domestic and foreign semiconductor companies operating in China to actively protect their legitimate rights and interests in accordance with World Trade Organization (WTO) rules.

Relevant industries have recently reported to the Chinese Ministry of Commerce (MOFCOM) that the domestic legacy chip industry is facing unfair competition challenges from imported products from the US, and has the appeal to apply for anti-dumping and anti-subsidy investigations against these products, the CSlA said in a statement. 

The MOFCOM on Thursday said that relevant domestic chip industries have reported concerns about the Biden administration offering substantial subsidies to the US chip sector, giving US companies an unfair competitive advantage. "If domestic industries file an application request, the Chinese investigating authority will assess such application in accordance with China's relevant laws and regulations, as well as WTO rules, and will initiate investigations as required by law," a spokesperson for the ministry said in a statement. 

The CSIA said that for some time, the Biden administration has offered significant subsidies to its chip industry, giving US companies an unfair advantage in market competition and allowing them to export chips to China at low prices, which has seriously harmed the legitimate rights and interests of China's domestic industry. 

In August 2022, the Biden administration officially signed the CHIPS and Science Act, pledging up to $280 billion in subsidies, loan guarantees, and tax incentives to vigorously support the expansion of semiconductor manufacturing capacity in the US. This move seriously violates the fundamental principles of the market economy and has caused profound and significant disruptions to the global semiconductor supply chain, per the CSIA's statement.

The US policy has also sparked widespread concern across the global semiconductor industry, including in China, exacerbating instability in the sector, the CSIA said.

The steady development of the semiconductor industry relies on a fair and competitive market environment, "We firmly support both domestic and foreign semiconductor companies operating in China to actively safeguard their legitimate rights and interests in accordance with WTO rules," the association stated. 

"We firmly believe that the Chinese government, in handling the industry anti-dumping and anti-subsidy applications and probes, will adhere to principles of fairness and justice, fostering a healthy and orderly market environment for industrial development," according to the CSIA.

The CSIA encouraged companies to advance the semiconductor industry to a new phase of high-quality development through continuous technological innovation, strengthen industrial chain collaboration, and engage in active international cooperation. These efforts aim to build a more open, fair, and orderly market environment, laying a solid foundation for the prosperous development of the global semiconductor industry.

The association has always adhered to its service mission, providing comprehensive support and assistance to all industry peers committed to the development of China's semiconductor industry, it said. 


Global Times