The World Semiconductor Council (WSC) is the only organization that brings together the world’s major semiconductor producers to discuss common objectives on topics such as innovation, growth, environment, safety and health, free trade, intellectual property protection, and government regulation.   The WSC also is the only organization that meets regularly with governments and international organizations to advance the objectives of the global semiconductor industry.   The WSC magnifies the reach of an individual semiconductor company located in a particular country by pursuing benefits for that company in countries and markets around the world.

In the prior year, the WSC accomplished the following:

1.  Progress in obtaining duty free treatment for semiconductor products around the world.  The WSC has worked intensively with major governments to obtain duty free treatment for two new, broad categories of semiconductor products:  i) Multi-Chip Packages (MCPs); and ii) Multi Component Integrated Circuits (MCOs).  MCOs alone are estimated to comprise between 1.5 percent and 3 percent of the global semiconductor market.  The WSC’s efforts continue.

- Benefits for business: Duty free treatment of these types of semiconductors will mean significantly lower costs, more trade, higher profits and more revenue available for innovation.

2.  Progress in combating illegal trade in counterfeit semiconductors worldwide, working with customs officers in relevant countries.

- Benefits for business: Reducing trade in counterfeits increases the revenues for legitimate semiconductor trade, protects customers from inferior and dangerous products, and protects the reputation of semiconductor producers from falsely marked products.

3.  Progress in striving to monitor and improve the quality of patents issued internationally, working with international patent offices and the World Intellectual Property Organization (WIPO). 

- Benefits for business: Improved monitoring and better quality patents should decrease frivolous patent infringement litigation and consequently reduce legal and administrative costs and barriers to trade.

4.  Progress in proactively dealing with government regulatory proposals/measures that could have a harmful effect on innovation in the semiconductor industry around the world.  These efforts include common strategic approaches to:

·         Rules that would limit the free flow of encryption products

·         California Green Chemistry regulations on use of certain essential substances

·         REACH and RoHS regulations around the world on use of certain essential materials

·         US SEC Conflict Minerals Supply Regulations applicable to the supply chain for certain essential materials

·         SAICM (Strategic Approach to International Chemicals Management) adaptation plan to Japanese law.

A key goal is to ensure that governments understand the impact of measures on the semiconductor industry, as well as alternatives for the most innovation-friendly way to accomplish the government’s policy objectives.

-Benefits for business:  Forestalling or reducing the impact of needlessly burdensome or restrictive government regulations enhances the global semiconductor industry’s ability to innovate and operate efficiently.  It also reduces costly administrative burdens on business, and potentially limits legal liability. 

5.  Progress in reducing our impact on the environment and protecting public safety and health.  This includes enormous efforts by WSC member companies to agree on and achieve goals on voluntary, collective reduction of PFC emissions, conservation of energy resources, and restrictions on the use of harmful chemicals.

- Benefits for business:  Protecting our environment and making the world a better place is the prime goal and benefit.   Collective action and information sharing on conservation best practices under the WSC magnifies the benefit beyond what individual companies or associations could achieve if they acted on their own.  Showing voluntary commitment to progress and self-policing on environmental protection also helps to forestall government mandates on business in this area.

6.  Progress in analyzing export restrictions applicable to the semiconductor industry around the world, with a view toward liberalization by eliminating unnecessary or outdated restrictions.

-Benefits for business: Reducing or streamlining unnecessary or excessively burdensome export controls should increase trade in semiconductors and reduce uncertainty related to licensing and compliance requirements.

7.  Telling the world about the semiconductor industry’s positive contribution to public welfare.  Interacting regularly with governments and international organizations affords the WSC the opportunity to raise the profile of the semiconductor industry.  The primary aim is to educate opinion leaders and policy makers around the world about the profoundly positive impact of semiconductors in virtually every aspect of modern life including energy savings, consumer health and safety, trade and transportation, communications and information, and improved comfort and standard of living.

-Benefits for business:  Enhancing the semiconductor industry’s reputation with governments and consumers worldwide has many direct and indirect benefits, including improving our ability to influence policy and attract investment.

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The WSC member secretariats would be happy to provide further details on any of the above topics upon request.  The WSC encourages suggestions from business regarding new objectives or strategies, or other ideas on how we can add value for our business constituency.