U.S. Semiconductor Companies Join Chinese Expo to Foster Collaboration

The China International Import Expo (CIIE), a battleground for semiconductor supremacy between the U.S. and China, is drawing attention as Western companies, including those from the U.S., flock to the event. American semiconductor company Micron, which China has sanctioned, and Dutch semiconductor equipment company ASML, which has been blocked from exporting key equipment due to U.S. export restrictions, have set up booths to communicate with local government officials and business representatives, signaling efforts to improve relations.

With the business community taking the lead in restoring U.S.-China relations, anticipation is building for a potential thaw in relations. President Joe Biden and Chinese President Xi Jinping are expected to hold a summit on November 15th.

U.S. Semiconductor Companies at the Chinese Expo? “Hopes for Strengthening Cooperation”

According to the South China Morning Post (SCMP) and other sources on November 7th (local time), 47 semiconductor-related companies, including Samsung Electronics, Micron, Qualcomm, AMD, and ASML, participated in the Integrated Circuit Special Exhibition at the CIIE held in Shanghai from November 5th to 10th, setting up booths to meet with local customers.

The CIIE is an import-focused expo that China has promoted since 2018 to increase openness and imports. The event is known for its significant investment, with President Xi directly involved in the planning stages.

Micron was the most notable participant at the event. Previously, China had halted purchases of Micron products in May, citing severe security issues that failed to pass a security review. This was interpreted as a form of ‘retaliatory sanction’ in response to U.S. semiconductor export restrictions.

However, recently, the Chinese government has been showing signs of reconciliation, meeting with Micron CEO Sanjay Mehrotra and others. Micron set up a booth at the event for the first time this year, which was visited by Chinese Commerce Minister Wang Wentao and U.S. Ambassador to China Nicholas Burns.

One Micron booth employee stated that U.S. companies are striving to improve relations with China in the face of business difficulties, deploying 70-80 staff members at the booth to demonstrate trust in China.

Another U.S. semiconductor company, AMD, participated in the event for the third consecutive year. At its booth, AMD showcased artificial intelligence (AI) solutions for data centers and consumer electronics. Spencer Pan, Senior Vice President of AMD, explained that he hoped to set up a booth at the CIIE to strengthen cooperation with local industries in China.

ASML and Samsung Booths Visited by Chinese Government Officials…

ASML, which manufactures extreme ultraviolet (EUV) lithography equipment essential for advanced semiconductor production, also set up a booth at the event. Considering U.S. export restrictions, the booth featured deep ultraviolet (DUV) lithography equipment with relatively lower specifications. It is reported that Chinese government officials were seen visiting the booth in succession.

A Chinese government official also visited the booth set up by Samsung Electronics, where they introduced the latest consumer products and answered questions related to the semiconductor industry in China. At this venue, Samsung Electronics showcased a 3-nanometer (nm) Gate-All-Around (GAA) wafer, according to the SCMP.

Some interpret the bustling CIIE as a sign that many companies seek investment opportunities despite concerns about China’s economic slowdown.

Ambassador Burns emphasized in a meeting with reporters on-site, “This year, a record number of U.S. companies are participating,” and “The scale of trade between the U.S. and China reached a record high of $690 billion last year.” He stated that the U.S. stance on China is about “de-risking” (removing risk), not “decoupling” (completely separating supply chains), and that “the U.S. and China do not intend to sever their mutual economic relationship completely.”

Biden-Xi Jinping, Likely to Meet in San Francisco on the 15th

This atmosphere has emerged amidst discussions of a summit between President Biden and President Xi. Kyodo News cited an anonymous U.S. government official that final preparations are underway for the two leaders to meet at the Asia-Pacific Economic Cooperation (APEC) event in San Francisco on November 15th.

If a bilateral meeting between President Biden and President Xi is realized, it will be their first face-to-face meeting in a year since the G20 summit held in Indonesia last year. While China has not announced President Xi’s attendance at APEC, the White House has previously stated that a U.S.-China summit will be held at APEC.

Bloomberg reported that President Xi will likely attend a dinner with U.S. business leaders scheduled for next week in San Francisco. Amid China’s economic slowdown and U.S.-China tensions, which have deterred Western companies from investing in China, one of President Xi’s main tasks during his U.S. visit will be to reassure foreign investors, according to the media outlet.

However, it remains uncertain whether this summit will lead to substantial improvements in U.S.-China relations. Kyodo News reported that while the U.S. hopes to restart military dialogue to prevent accidental clashes with China, numerous challenges exist, including the Taiwan issue and U.S. semiconductor export restrictions.

By. Jung Hyunjin