Expanded ITA to boost market for MCO semiconductors

Nov. 13, 2014

Makers of everything from loudspeakers to multicomponent (MCO) semiconductors should benefit from the expanded Information Technology Agreement (ITA) between the U.S. and China announced this week at the Asia-Pacific Economic Cooperation (APEC) leaders meeting. The agreement paves the way for the first tariff cutting deal at the World Trade Organization in 17 years.

Brian Toohey, president and CEO of the Semiconductor Industry Association, said, “The ITA has played a central role in helping the U.S. semiconductor industry drive innovation, create jobs, lower consumer prices, and connect communities throughout the world. “[Tuesday’s] agreement between the U.S. and China to expand the ITA is a hard-fought victory for the U.S. semiconductor industry and a big win for the U.S. economy and consumers around the world. We look forward to all ITA countries finalizing a deal as soon as possible.”

The SIA predicts that inclusion of MCOs in an expanded ITA would save the industry $150 to $300 million in global annual tariffs.

Gary Shapiro, president and CEO of Consumer Electronics Association, said, “It took hard work, and compromise on all sides, but [Tuesday’s] announcement from Beijing on a breakthrough on the ITA marks a major path forward. President Obama, Ambassadors Froman and Punke, and their team at USTR have worked tirelessly over the past week to find a way forward. We commend the Chinese hosts of APEC and leadership in Beijing for reaching a mutually acceptable path forward to continuing, and swiftly concluding, ITA discussions in Geneva.”

According to the White House, industry estimates have concluded that a successful expansion of the ITA agreement would

  • support up to 60,000 additional U.S. jobs.
  • eliminate tariffs on roughly $1 trillion in annual global sales of information and communications technology products of which more than $100 billion now come from the United States,
  • increase annual global GDP by an estimated $190 billion, and
  • boost productivity and growth across the global economy, particularly in developing countries.

According to Doug Palmer and Katy Bachman in Politico, the expanded ITA agreement “…could be the best thing to happen to tech geeks around the world in years.” They write that makers of video game consoles, GPS devices, loudspeakers, printer cartridges, and medical devices are likely to gain more access to international markets, as are manufacturers of devices that make up the Internet of Things.

About the Author

Rick Nelson | Contributing Editor

Rick is currently Contributing Technical Editor. He was Executive Editor for EE in 2011-2018. Previously he served on several publications, including EDN and Vision Systems Design, and has received awards for signed editorials from the American Society of Business Publication Editors. He began as a design engineer at General Electric and Litton Industries and earned a BSEE degree from Penn State.

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