[Federal Register Volume 70, Number 187 (Wednesday, September 28, 2005)]
[Notices]
[Pages 56642-56644]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-5306]


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DEPARTMENT OF COMMERCE

International Trade Administration


U.S. Microelectronics Trade Mission

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice to Microelectronics Trade Mission to Shanghai, China, 
March 20-23, 2006.

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SUMMARY: The United States Department of Commerce, International Trade 
Administration, U.S. Commercial Service, Office of Global Trade 
Programs is organizing a microelectronics trade mission to China, March 
20-23, 2006. This trade mission will take place during the highly 
acclaimed annual Shanghai exhibition Electronica and Productronica 
China 2006--co-located with SEMICON China. Participating firms will not 
only have pre-arranged one-on-one meetings scheduled for them by the 
U.S. Commercial Service in Shanghai, but will also have the opportunity 
to make additional business contacts at the exhibition. A similar 
microelectronics trade mission took place in March 2005.
    Contact: Office of Global Trade Programs; Room 2012; Department of 
Commerce; Washington, DC 20230; Tel: (202) 482-4457; Fax: (202) 482-
0178.

SUPPLEMENTARY INFORMATION: Microelectronics Trade Mission, Shanghai, 
China, March 20-23, 2006.

Mission Statement

I. Description of the Mission

    The United States Department of Commerce, International Trade 
Administration, U.S. Commercial Service, Office of Global Trade 
Programs is organizing a microelectronics trade mission to China, March 
20-23, 2006. This trade mission will take place during the highly 
acclaimed annual Shanghai exhibition Electronica and

[[Page 56643]]

Productronica China 2006--co-located with SEMICON China. Participating 
firms will not only have pre-arranged one-on-one meetings scheduled for 
them by the U.S. Commercial Service in Shanghai, but will also have the 
opportunity to make additional business contacts at the exhibition. A 
similar microelectronics trade mission took place in March 2005.
    Trade mission participants will include representatives from U.S. 
firms specializing in microelectronics design, manufacturing, and 
distribution, including semiconductor devices, integrated circuit 
design services, semiconductor manufacturing equipment, clean room 
equipment, and electronics packaging/interconnects.

II. Commercial Setting for the Mission

    Microelectronics design, manufacturing, and distribution make the 
foundation for the rapid growth of e-commerce, Web-enabled 
technologies, and wireless technologies that will be the major business 
prospects in the 21st century in Asia. The Chinese Government is 
strongly committed to the development of a domestic microelectronics 
industry to enable the adoption of Information Technology (IT) 
nationwide and to improve economic productivity.
    The first wave of semiconductor manufacturing activity and 
investment is well under way in China, based on the growth of wafer 
fabrication facilities (fabs) and semiconductor packaging and test 
houses producing older-generation devices. China represents only a 
small portion of worldwide semiconductor production capacity. This is 
changing dramatically as more investment pours into the country, 
significantly increasing the number of fabs, assembly and test plants, 
electronics material production and very likely, semiconductor 
manufacturing equipment production in China. There is a sizeable 
overseas influence in China, and of all the announced semiconductor 
industry projects, those with overseas support are the most likely to 
survive in the rapidly growing China market.
    China's total semiconductor consumption reached $42 billion in 
2004. IT products, consumer electronics, communications and industrial 
instrumentation are the main applications driving Chinese semiconductor 
demand. In 2004, new semiconductor manufacturing equipment sales in 
China were $2.73 billion, while used/refurbished equipment revenues 
were an estimated $180 million. The used and refurbished equipment 
market in China is expected to grow in the coming years, approaching 
$500 million by 2007. Most Chinese fabs and foundries are confident 
that 150 mm and 0.35 micron to 1.0 micron technology will remain strong 
over the next five years in China, though the majority of capacity and 
output will gradually shift to 200 mm and 0.25 micron to 0.13 micron 
production lines. The 300 mm fab era has also come to China with one 
fab in operation and several additional fabs possible over the next 
three years.
    These development trends indicate that China is emerging as a new 
and strong production base for electronic and IT products in Asia. With 
this rapid growth in the IT sector, China is forced to build its strong 
microelectronics industry primarily on imports and investment from 
foreign suppliers. Shanghai, Beijing, and Hong Kong are among the 
cities that lead China's IT industry growth.

III. Goals for the Mission

    The goal is to assist U.S. microelectronics industry's small- to 
medium-sized enterprises (SMEs) in achieving their export business 
objectives in the Chinese market through participation in this trade 
mission, which will take place during a major microelectronics 
exhibition. Mission participants will gain first-hand market exposure; 
meet with potential agents, distributors, and business partners from 
the private sector; and obtain information that will help to position 
their firms to take advantage of the strong business opportunities in 
China's microelectronics market.

IV. Scenario for the Mission

    The primary focus of the mission is on Shanghai. The schedule 
includes site visits, briefings by the U.S. government, and an export 
control seminar sponsored by the Semiconductor Equipment Materials 
International (SEMI) Association. The purpose of the site visits will 
be to provide a broad vision of the Chinese electronics/semiconductor 
industry, which will help the participants to better understand the 
Chinese market. Attendance at the export control seminar will be 
invaluable for mission participants, as it will cover the full gamut of 
export control requirements for technology companies. It will include 
government requirements and perspective, industry perspective and best 
practices, and business advantages for companies that manage export 
controls strategically. A SEMICON forum, which all of the participants 
will be invited to attend, will also be on the agenda. The dates of the 
exhibition are March 21-23, 2006. The U.S. Commercial Service in 
Shanghai will set aside time for pre-arranged individual business 
meetings for the mission participants. In addition, the participants 
will have the opportunity to conduct business with exhibitors at the 
show, as well as display company literature in a booth at the 
exhibition. No other types of exhibition items may be displayed. A 
hospitality reception for the participants will be held the evening of 
March 23.
Timetable
Saturday, March 18--Arrive Shanghai (optional); activities open.
Sunday, March 19--Arrive Shanghai (optional); no host dinner at hotel 
and/or activities open.
Monday, March 20--Breakfast briefing for participants with Commercial 
Service Shanghai staff; and high-tech industry park meetings and/or 
site tours to:
    HHNEC (Shanghai Hua Hong NEC Electronics Company) Intel.
    Grace Semiconductor Manufacturing Corp. (GSMC). Semiconductor 
Manufacturing International Corp. (SMIC).
Tuesday, March 21--All-day individual one-on-one pre-arranged business 
meetings for participants.
Wednesday, March 22--SEMI association market briefing in morning. 
Attend exhibition in afternoon.
Thursday, March 23--Attend SEMI China export control seminar in 
morning. Attend exhibition in afternoon. Reception in evening.
Friday, March 24--Participants may wish to have follow-up business 
visits/appointments or depart for U.S.


    Note:  These dates and activities are tentative and subject to 
change. The final schedule will depend on the availability of 
Chinese officials, specific goals of mission participants, and air 
travel schedules.

V. Criteria for Participation

     Relevance of the company's business line to mission's 
scope and goals;
     Potential for business in the China market;
     Timeliness of the company's signed and completed 
application, and participation agreement, and payment of the mission 
participation fee of $2,500 for the first company representative, and 
$500 each for additional representatives;
     Provision of adequate information on the company's 
products and/or services and communication of the company's primary 
objectives to facilitate appropriate matching with potential business 
partners;

[[Page 56644]]

     Certification that the company meets Departmental 
guidelines for participation, including certification that the 
company's products and/or services are manufactured or produced in the 
United States, or if manufactured/produced outside of the United 
States, the product/services should be marketed under the name of the 
U.S. firm and have U.S. content of at least fifty-one percent of the 
value of the finished good or service.
    A minimum of eight and a maximum of fifteen participating companies 
will be recruited in an open and public manner, including publication 
in the Federal Register; posting on the Internet; press releases to 
general and trade media; direct mail and broadcast fax; notices by 
industry trade associations and other multiplier groups; and 
announcements at industry meetings, symposiums, conferences, and trade 
shows.
    Any partisan political activities (including political 
contributions) of an applicant are entirely irrelevant to the selection 
process. The $2,500 trade mission participation fee does not include 
the cost of travel, lodging, and meals. Recruitment will begin 
immediately and will close on February 3, 2006.
    Contact, Marlene Ruffin, Global Trade Programs, U.S. & Foreign 
Commercial Service, U.S. Department of Commerce, 1401 Constitution 
Avenue, NW., Room 2114, Washington, DC 20230, Phone: 202-482-0570, Fax: 
202-482-0872, E-mail: [email protected].

    Dated: September 22, 2005.
Todd Thurwachter,
Director, Office of Trade Event Programs.
 [FR Doc. E5-5306 Filed 9-27-05; 8:45 am]
BILLING CODE 3510-DR-P