US and China semiconductor working group unlikely to ease trade tensions in short term but seen as a good start, say analysts

  • The new working group serves as a communication channel for the two nations to find solutions in restricted trade of high-tech items like semiconductors
  • However, trade tensions in the semiconductor sector would not be eased any time soon amid US-China rivalry, say analysts

A 300 millimetre silicon wafer, with 22 nanometer chips, seen in the clean room at the GlobalFoundries fab in Dresden, Germany, on Feb. 11, 2021. Photo: Bloomberg

The semiconductor working group set up between chip industry associations in China and the US is not a sign that trade tensions in the sector will ease anytime soon, but can build on the existing incentives for business cooperation, according to analysts. 

The working group was set up between the China Semiconductor Industry Association (CSIA), a state-backed trade group, and Washington-based Semiconductor Industry Association (SIA), to create an avenue for communication on issues such as “export controls [and] supply chain security”,  the CSIA said in a statement on Thursday. 

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