On April 5, 2024, the United States and the European Union issued a joint statement after the meeting of the Trade and Technology Council (TTC), announcing new measures for the traditional semiconductor supply chain. The move marks a deep collaboration between the two companies in the global semiconductor industry, with the aim of reducing dependence on specific economies while enhancing their respective supply chain security and production capabilities.
background
Semiconductors are at the heart of modern technology, from smartphones to automobiles to critical defense systems. However, in recent years, the global semiconductor supply chain has faced significant challenges, including geopolitical tensions, trade conflicts, and disruptions caused by the COVID-19 pandemic. As global leaders in science and technology and the economy, the cooperation between the United States and the European Union in the field of semiconductors is of great strategic importance.
The core content of the U.S.-EU Joint Statement In the joint statement, the United States and the EU proposed the following key measures:
- Joint early warning mechanism: used to identify supply chain disruptions and take early action.
- Transparency Mechanism: Share public support information to enhance transparency and cooperation in the semiconductor industry.
In addition, the statement expressed concern about the non-market economic policies of certain external economies that could lead to market distortions and over-reliance on semiconductors at mature process nodes.
Strengthen the control of China's semiconductor industry
In the joint statement, the United States and the EU expressed concern about "the non-market economic policies and practices of certain economies." Analysts generally believe that this wording is aimed at the Chinese government's industrial support policies.
In fact, in October last year, the Netherlands took the lead in joining the US camp to impose export controls on Chinese chipmakers; And TSMC is also required to withdraw from the Chinese market by the end of 2025. The purpose of this series of measures is to curb China's development in the field of advanced chip manufacturing and maintain the absolute superiority of the United States in this key field.
The joint statement indicated that the United States and Europe will expand into the field of traditional chips, trying to block China's further expansion in the low-end chip market. After all, these old process chips are still widely used in important fields such as industry, communications, and automotive.
However, the mainland has long been aware of its strategic shortcomings in the field of chips. In recent years, China has invested heavily in the semiconductor industry, and the rise of companies such as Unisplendour and Changxin Storage is gradually changing the situation of China's "lack of cores".
Divergent interests are difficult to resolve and persistent differences
Although the United States and the EU have agreed on the issue of semiconductor supply chains, long-term cooperation is not easy.
On the one hand, European companies have spent many years in China's semiconductor market, and they will suffer heavy losses if they are directly subject to US control measures. In recent years, Europe has also been indignant at the unilateral approach of the United States in areas such as semiconductors.
On the other hand, the United States is highly dependent on imports for the semiconductor industry, and once the conflict with its allies intensifies, it may exacerbate supply chain risks. Last year, the U.S. government had to temporarily ease export restrictions to allies such as the Netherlands and Japan.
Therefore, the cooperation between the United States and Europe in the semiconductor industry chain should be gradual and gradual to avoid the emergence of conflicting interests. Balancing commercial interests and national security is the key to a long-term win-win situation for both parties. In terms of technology, the United States and Europe also need to strengthen their own industrial strength through investment, innovation and other means to truly realize the "reshoring of semiconductor manufacturing".
In addition, the accusations against "non-market economies" seem to be unconvincing. After all, industrial policy is an important driver of China's modernization. As the mainland government emphasized, win-win cooperation can bring about a virtuous cycle of the global semiconductor industry chain, and any artificial restrictions may bring negative chain reactions.
In conclusion, the semiconductor supply chain is a global challenge with a complex set of interests. Achieving rational dialogue and striking a new balance with emerging economies such as China will be the top priority in the future.