San Jose-May 24, 2000- The Semiconductor Industry Association (SIA) today hailed the bipartisan vote by the House of Representatives in granting permanent normal trade relations (PNTR) with China. PNTR gives the U.S. the trade advantages in China that China currently has in the U.S.

"Today's vote by the U.S. House to grant PNTR for China represents a giant opportunity for the semiconductor industry," said SIA President George Scalise. "Our number one legislative objective this year is congressional approval of PNTR with China so that our industry can benefit from the opening of this important market."

Currently, the semiconductor market in China is estimated to be an $8 billion per year market and it is growing rapidly. It is expected to become the third largest semiconductor market in the world within the next year, and the second largest by 2010.

"This has truly been a bipartisan effort and we applaud the work and dedication of President Clinton, Ambassador Barshefsky, the House Republican leadership, and key Democratic leaders," added Scalise. "Without their steadfast support, we would have lost this great opportunity to improve our trade relations with China. This is a clear economic win for the United States. Today's vote will open China, the world's largest emerging market to American goods and services, creating American jobs and increasing U.S. exports."

During the U.S.-China bilateral negotiations, the semiconductor industry outlined six priority objectives that will greatly improve our ability to do business in China. Each one of these was accomplished under the terms of the bilateral agreement concluded by the United States Trade Representative's Office last November. Specifically, China agreed to: eliminate its 6-10% semiconductor tariffs by 2002; grant trading and distribution rights to foreign companies; guarantee that state-run companies will make purchasing decisions on the basis of commercial considerations; stop imposing export performance, technology transfer and local content requirements as a condition for market access or investment approval; protect intellectual property; and allow the U.S. to continue to use its current non-market economy antidumping methodology.

The Semiconductor Industry Association is the forum in which semiconductor companies work collectively to advance the competitiveness of the $76.6 billion U.S. industry, a leading contributor to the nation's economy. The SIA is the premier trade association representing the semiconductor industry, with member companies comprising more than 90 percent of U.S.-based semiconductor production. Collectively, the chip industry employs a domestic workforce of more than 284,000 people.

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