SEMI Applauds Elimination of Tariffs on Multi-Chip Packages


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SEMI APPLAUDS ELIMINATION OF TARIFFS ON MULTI-CHIP PACKAGES

SAN JOSE, Calif., November 3, 2005 – SEMI commends the major semiconductor producing trading partners for reaching an agreement to eliminate tariffs on multi-chip packages (MCPs).

The MCP agreement was negotiated through the bodies that formulate policy recommendations and negotiate agreements for semiconductor devices, the World Semiconductor Council (WSC) and the Governments/Authorities Meeting on Semiconductors (GAMS). Tariffs on MCPs will be eliminated in the United States (2.6 percent), Korea (2.6 percent) and the EU (up to almost 4 percent). Other GAMS members agree to lock in zero duties on MCPs.

Multi-chip packages are a type of semiconductor device that are used primarily in mobile handsets. This is a relatively new product area with high growth potential. The global MCP market did not exist five years ago and it had grown to $4.2 billion by 2004. Market forecasts project that the market will nearly double to $7.92 billion by 2008, increasing at a compound annual growth rate (CAGR) of 25 percent, well above the 10% CAGR for the overall semiconductor industry.

“SEMI commends all parties on their agreement to eliminate MCP duties. This agreement is a great example of authorities knocking down a barrier to trade for a fast-growing high technology product area. Tariffs stifle competition and impose costs on both producers and customers,” said Victoria Hadfield, President of SEMI North America. Hadfield continued, “SEMI has long supported tariff elimination and international trade expansion as economic priorities. Free trade and open markets enable the continued growth and success of high technology sectors such as semiconductor devices, equipment and materials.”

SEMI is a global industry association serving companies that provide equipment, materials and services used to manufacture semiconductors, displays, nano-scaled structures, micro-electromechanical systems (MEMS) and related technologies. SEMI maintains offices in Austin, Beijing, Brussels, Hsinchu, Moscow, San Jose (Calif.), Seoul, Shanghai, Singapore, Tokyo and Washington, D.C. For more information, visit www.semi.org.

ASSOCIATION CONTACTS
Jonathan Davis/SEMI
Tel: 408.943.6937
Email: jdavis@semi.org

Maggie Hershey/SEMI
Tel: 202.289.0440
Email: mhershey@semi.org