E u r o p e a n  S e m i c o n d u c t o r  I n d u s t r y  A s s o c i a t i o n
Further Expansion of 
Trade in Semiconductors
WTO Workshop -ITA  -16 Sept. 2021
Hendrik Abma , Director -GeneralRD/IT/34Content
•European Semiconductor Industry Association
•Enabling role of semiconductors
•Benefits of ITA trade liberalisation for semiconductors
•Advantages of multi -, pluri -lateral vs. bi -lateral
•ITA needs to keep the pace with technology, to promote innovation
•ConclusionThe voice of the semiconductor 
industry in Europe
Represent the interests of the European -based semiconductor industry and advocate for its 
international competitiveness.
•most R&D -intensive sector 
•global supply chain: EU companies sell in worldwide markets
•short innovation cycles, fierce competition & price fluctuation
•multiplier for growth, ICT boost innovation
•global market at $ 440 billion in 2020 (+6.8%)
EU
•ca. 10% of global market
•Europe strongest market for automotive (26%)
•ESIA is member of the World Semiconductor Council (WSC)
ESIA Members
World Semiconductor Council
Aim: “to expand international cooperation in order to facilitate the healthy growth of the industry from a 
long -term, global perspective ”
•Annual Joint Statement from the CEO Meeting of the WSC -World Semiconductor Council   
•Annual Chair Summary by the GAMS -Governments / Authorities Meeting on Semiconductors
•Unique model of worldwide 
industry -to-governments cooperation
•Voluntary basis, consistent with WTO rules
•Member companies cover more than
95% of wordwide production
1995
SIA1997
ESIA2006
CSIA1995
JSIA
1999
TSIA1997
KSIA
Enabling role of semiconductors
A significant part of OECD economic growth comes from more productivity, with electronics as key driver. 
Semiconductors are the building blocks of virtually all electronic products .
Productivity
x96
leversInnovation
Electronics Value Chain in 2019. Source: DECISION Etudes & Conseilx5.3x113•Semiconductors enable keyfunctions inelectronics, forexample
•Operations control
•Data processing and storage
•Input and output management
•Sensing
•Wireless connectivity
•Power management
•Without these functions many vital medical devices ,thedigital technology needed to
work &interact remotely ,and energy efficient devices which help reduce emissions …
would simply notexistEnabling role of semiconductors
Benefits of ITA trade liberalisation 
for semiconductors
Semiconductors 
•Largest ICT category in ITA 1996* 
•Exponential growth in units since 1996
*Source: WTO 2015 Source: WSTS5101520
0Billions of Units per Month30
25
1995 2000 2005 2010 2015 2020Semiconductors is the largest 
IT product category in ITA
and reached the 32% of global 
exports of ITA products in 2015 * Benefits of ITA trade liberalisation 
for semiconductors 
•ITA trade liberalisation
▪Created more global markets 
▪Promoted innovation
▪Accelerated productivity
▪Made new technologies, and key 
intermediate components of the global 
digital infrastructure, more affordable 
and accessible worldwide.
▪Drove semiconductor
market growth
*Source: WSTS04080120160200240280320360400440480
1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019Sales of
semiconductors
in  US$BSize and growth of the global
Semiconductor market
1997 -2020*Advantages of multi -, pluri -lateral
vs. bi -lateral
Globalised semiconductor supply chain:
“A semiconductor product could cross international borders approximately 70 or more times 
before finally making it to the end customer”
•Low administrative burden , and trade -free from tariff and non -tariff barriers are vital for 
semiconductor manufacturing!
•No complex / burdensome rules of origin (due to globally distributed manufacturing, semiconductor 
products do not meet preferential origin requirements in most cases)
•More flexibility for exporters as the same tariff -free treatment applies in ITA’s geographies
➔Multi -and pluri -lateral trade liberalisation such as ITA is the most efficient way to ensure global 
free flow of goods. ITA needs to keep the pace with 
technology, to promote innovation
•1996: ITAaims to cover all semiconductors, in recognition of their enabling role in driving innovation, 
productivity, growth & societal benefit.
•2015:
•The ITA Expansion covers approximately 4% of the global semiconductor market resulting in global yearly 
tariff savings of over 500 million $. Source: ESIA estimate
•The ITA Expansion  covers  about  9 -13%  of  total current world  trade. Source: European Commission
•Today: Due to the high speed of innovation in the semiconductor industry, a number of innovative products are 
not covered by the ITA. For example:
•Semiconductor -based transducers
•Certain Embedded Chips or Dies , not matching the description in HS headings 8541/8542 for 
semiconductors
•Advanced semiconductor manufacturing equipment and materialConclusion
•ESIA strongly supports a continuous adaptation of the ITA product 
scope to new and evolving semiconductor technologies, as well as 
geographical expansion. 
•ESIA calls on ITA participant to initiate a regular review of the ITA 
scope, as per Ministerial Declaration on the ITA Expansion of 16 
December 2015. 
ESIA looks forward to working with WTO and its members
to keep the ITA up -to-date!Questions?
Thank you for your attention!
http://www.eusemiconductors.eu/
Twitter : @eSemiconductor
LinkedIn : European Semiconductor Industry Association