WSC Recommendations to GAMS FINAL

FINAL

15th Meeting of the World Semiconductor Council (WSC)

Recommendations to Governments/Authorities

May 26, 2011

Fukuoka, Japan

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Cover Memorandum to GAMS Members

The 15th Meeting of the World Semiconductor Council (WSC) took place in Fukuoka, Japan, on May 26, 2011. The WSC Joint Statement adopted at the meeting is attached.

WSC Recommendations to Governments/Authorities Meeting on Semiconductors (GAMS) are indicated in the attached WSC Joint Statement in bold and underlined text. In addition, Recommendations that WSC wishes to send to GAMS only are listed below. These Recommendations are based on the relationship between the WSC and GAMS established in the Agreement Establishing the World Semiconductor Council, and on the following principles:

·  The promotion of open competitive markets throughout the world without any tariff and non-tariff barriers;

·  Full implementation by all WTO members of their commitments;

·  Full protection of intellectual property, as stated in the commitments under the WTO (including the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS);

·  Non-discrimination for foreign products and services in all markets, including full adherence to WTO/GATT and GATS, which provide for national treatment of goods and services; and

·  Promoting technological advances and sound environmental and safety practices.

Regional Stimulus:

Advocating transparency in stimulus measures among governments and authorities, GAMS has suggested that WSC collect further information on this topic and report it at 2011 GAMS meeting in order to promote a favorable environment for the international semiconductor market.

In response to the above point, WSC has discussed what information WSC should provide to GAMS on this topic, but consensus has not been reached. Some associations will only consider what appropriate stimulus measures are while some associations suggest to also discuss what inappropriate stimulus measures and bail-outs are. Several associations believe that separate measures concerning the semiconductor sector are unwarranted. There is disagreement as to whether existing WTO disciplines are sufficient to deal with issues of prevention of inappropriate stimulus measures and how to deal with companies that produce both memory and non-memory products.

Respectfully,

May 26, 2011

Junshi Yamaguchi

2011 WSC Chair: Semiconductor Industry Association in Japan

David Wang

2011 WSC Chair: Semiconductor Industry Association in China

Rick Tsai

2011 WSC Chair: Semiconductor Industry Association in Chinese Taipei

Enrico Villa

2011 WSC Chair: Semiconductor Industry Association in Europe

Oh Hyun Kwon

2011 WSC Chair: Semiconductor Industry Association in Korea

Ray Stata

2011 WSC Chair: Semiconductor Industry Association in the US