On Thursday, in a statement, the Chinese Semiconductor Industry Association (CSIA) said, it aims to establish a working group with its U.S-based counterpart.
The development marks a key shift from the Trump Administration’s moves to levy costs on China following a stream of intelligence reports of cyber campaigns launched by Beijing backed actors to steal U.S. intellectual property.
The announcement by CSIA signals a closer cooperation between the two countries over technology.
In a post. The CSIA said, it would form a joint working group with Washington-based Semiconductor Industry Association (SIA), with each side being represented by 10 semiconductor companies. The working group will meet at least twice a year to discuss issues including intellectual property, encryption, and trade policy.
The CSIA’s statement did not shed light on the date of the first meeting, nor the companies involved.
The SIA did not respond to requests for comments. The SIA’s website has not mention of the working group.
According to research firm ICInsights, of the $143 billion worth of chips sold in China last year, semiconductors worth $22.7 billion were produced in China; $8.3 billion was produced by Chinese-headquartered companies.
With Washington taking punitive steps towards Beijing’s murky economic policies which force foreign companies to fight state-backed Chinese companies, Huawei Technologies Co, one of China’s rare jewel, took a critical hit on its once-booming smartphone business.
While the Trump Administration’s punitive sanctions hit their mark against Chinese companies, it however created a global chip shortage.
It is high time that chip companies expand their production base to countries outside China.