'Western Technology Alliance' Kicks Off... US and EU "Joint Response to Semiconductor Supply Chain and Unfair Practices"

On the 29th (local time), participants at the US-EU Trade and Technology Council (TTC) meeting held in Pittsburgh, USA, are listening to the speaker's remarks.
[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Suhwan] The United States and the European Union (EU) have agreed to strengthen cooperation on semiconductor supply chains and collaborate to secure leadership in the era of new technology competition. This has led to analyses that a 'New Technology Alliance' involving Western countries is now being fully launched.

On the 29th (local time), immediately after the first meeting of the US-EU Trade and Technology Council (TTC) held in Pittsburgh, both sides issued a joint statement saying, "We have agreed to strengthen technological leadership and competitiveness through cooperation between the two sides," and "We will enhance mutual cooperation on major economic and technological issues and strive to achieve tangible results before the next meeting."

They particularly agreed to strengthen related cooperation to resolve the global semiconductor supply shortage and secure leadership in semiconductor technology as a core national industry.

Both sides stated, "We will enhance mutual communication to identify common vulnerabilities related to semiconductor supply chains and develop regional technology research and development and manufacturing ecosystems."

From the right, Tony Blinken, U.S. Secretary of State, Gina Raimondo, U.S. Secretary of Commerce, and Katherine Tai, U.S. Trade Representative (USTR) [Image source=AP Yonhap News]

They also agreed that each government will actively support strengthening domestic semiconductor production capabilities. According to the Semiconductor Industry Association (SIA) in the US, last year, semiconductor production within the US and EU accounted for 21% of global production.

This agreement came amid the recent US Biden administration's designation of semiconductor technology as a national core industry and its acceleration of related technology development.

The Wall Street Journal (WSJ) reported, "The US government has recently expressed concern about the semiconductor supply shortage and its adverse effects on US manufacturing overall," adding, "Biden administration officials last week requested information sharing regarding semiconductor supply chain issues from the automotive industry, technology companies, and semiconductor firms."

Although China was never mentioned in the statement, analyses suggest that by declaring their intention to respond to unfair market policies such as illegal government subsidies, both sides have effectively announced a strengthening of checks against China.

The statement said, "We will develop joint response strategies to mitigate the impact of unfair practices by our own countries as well as third countries and strive to prevent trade barriers that may arise in the field of new technologies."

Furthermore, the US and EU's announcement to strengthen monitoring and supervision of investments in new technology industries is also seen as targeting China. Earlier this year, a Chinese company announced the acquisition of ARM Holdings, the world's largest semiconductor design company for mobile devices based in the UK, and with the ongoing aggressive investments by Chinese capital, the Western world has been concerned about related technology leaks.

From the right, Valdis Dombrovskis, European Union (EU) Commissioner for Trade, and Margrethe Vestager, EU Commissioner for Competition
[Photo by AP News]

On this day, both sides stated, "We will mutually share relevant information such as types of investments and investors and analyze various risks centered on sensitive technologies and data."

In addition, the US and EU agreed to jointly research and review the development and implementation of artificial intelligence (AI) that enhances privacy protection, and to cooperate in 10 areas including eco-friendly technologies for climate change response, data governance, technology platforms, prevention of technology misuse for human rights protection, technology standardization efforts, and information technology (IT) security.

The meeting was attended on the US side by Secretary of State Antony Blinken, Secretary of Commerce Gina Raimondo, and US Trade Representative Katherine Tai, while on the EU side, Trade Commissioner Valdis Dombrovskis and Competition Commissioner Margrethe Vestager participated.

This content was produced with the assistance of AI translation services.