semiconductor industry group pushes for policies to boost us chip leadership
washington, Thursday, 15 May 2025.
the semiconductor industry association is lobbying for strategic trade policies. these policies aim to strengthen the competitiveness of the us semiconductor industry. the goal is to ensure a robust domestic ecosystem. the association’s advocacy comes amid increasing global competition. global semiconductor sales reached $630.5 billion last year. companies are investing nearly half a trillion dollars to boost us production. this investment aims to create american jobs and secure supply chains. david isaacs, vice president of government affairs at sia, will offer testimony.
strategic trade policies
The SIA advocates for trade policies that bolster the semiconductor industry’s competitiveness and innovation [1]. These policies aim to secure a robust domestic ecosystem and a strong global market presence [1]. Strategic trade initiatives are crucial for maintaining U.S. leadership in the face of increasing international competition [1]. The Building Advanced Semiconductors Investment Credit (BASIC) Act, welcomed by SIA, also supports this goal [1]. John Neuffer, SIA President and CEO, emphasized the importance of such policies [1].
semiconductor sales and investment
Global semiconductor sales reached $627.6 billion in 2024, a 19.134 19.1% increase from $526.8 billion in 2023 [1]. Updated figures show 2024 year-end sales at $630.5 billion [1]. Semiconductor companies are investing nearly half a trillion dollars in the U.S. to boost manufacturing and development [1]. This investment is expected to create high-paying American jobs and secure supply chains [1]. TSMC plans to increase its U.S. investment in advanced semiconductor manufacturing to $165 billion [1].
us-china trade dynamics
The U.S. and China reached an agreement on May 12, reducing tariffs to 10% for 90 days, potentially easing trade tensions [3]. However, Taiwan’s manufacturing PMI fell to 48.9 in April, reflecting the impact of tariffs [3]. The U.S. Department of Commerce revoked the ‘AI Diffusion Rule’ on May 13 but will implement other AI chip export controls [3]. China’s Q1 GDP grew 5.4% year-on-year, driven by pre-tariff stockpiling and government investment [3].
malaysia ai chip export
On May 14, 2025, the U.S. Department of Commerce lifted the ban on AI chip exports to Malaysia [6]. Malaysia is now reclassified to a category allowing limited access to advanced technology [6]. This policy change is expected to boost Malaysia’s AI sector, particularly in data centers and cloud computing [6]. An industry analyst noted this decision would likely lead to significant investments in Malaysia’s AI and semiconductor capabilities [6]. This reflects strengthening bilateral relations between Malaysia and the U.S [6].
taiwan’s economic outlook
Taiwan faces challenges from U.S. tariff threats, impacting its trade policies [7]. Taiwan’s economic sentiment score decreased to 34 points in March [3]. However, its export growth rate remained high at 26.6% in March [3]. US electronic product orders from Taiwan increased by 51.9% [3]. Despite geopolitical risks, Taiwan’s economy has shown resilience [7]. TSMC’s role as Taiwan’s ‘silicon shield’ remains crucial, even with its US$100 billion investment pledge in the U.S [7].