1. Report to the JSTC Regarding Regional Stimulus

2. Regional Stimulus
Working Group established under leadership of SIA in USA
Europe: Alfred Hoffmann; Vice President, Public Affairs, Infineon Technologies
Japan: Toyooki Mitsui, Chief Specialist for Government & Public Relations Division for Toshiba Corporation - Semiconductor Company
Korea: Steve Hong, General Manager of KSIA
US: Gilbert Kaplan, King and Spalding LLP representing Micron Technology.
Chinese Taipei – Dior Chen, Director of TSIA
China – Jun Li--CCID Consulting

3. Regional Stimulus
Background of the Regional Stimulus issue, based on prior statements:
2010 Joint Statement of the WSC:
While the WSC supports stimulus measures by the respective governments and authorities, it strongly urges governments and authorities to pursue actions that are guided by market principles and avoid adoption of protectionist or discriminatory purchasing or preferences as part of such efforts, and advocate transparency. Discriminatory policies will impair economic growth and recovery.

4. Regional Stimulus 2010 GAMS Statement:
GAMS took note of its Joint Statement, which stresses that the competitiveness of companies and their products, not the intervention of governments and authorities, should be the principle determinant of industrial success and international trade. While GAMS notes that the adoption and implementation of stimulus measures due to the current economic recession may be considered necessary by governments and authorities, GAMS agreed that such assistance should be provided in a market-oriented fashion to ensure the long-term commercial viability of assisted companies and also agreed to avoid adoption of protectionist measures. GAMS advocates transparency among governments and authorities and suggests the WSC to collect further information on this topic and report it to next years GAMS meeting in order to promote a favorable environment for the international semiconductor market.

5. Regional Stimulus 2010 JSTC Minutes: Regional Stimulus
Semiconductor Industry Association in US presented a brief summary of the breakout session’s discussion on the memory bailout issue that concluded that the JSTC or a working group should carry on the discussion. The draft presentation to GAMS, which focused on the recommendations to GAMS, was approved by the JSTC.
ACTIONS:
Semiconductor Industry Association in US will lead working group to collect further information on this topic and to prepare report for WSC to provide to the 2011 GAMS.
The other associations will let Semiconductor Industry Association in US know who will be involved in the regional stimulus project by the end of next week and provide feedback by November 15 to Semiconductor Industry Association in US on Semiconductor Industry Association in US paper to clarify the agenda on this

6. Regional Stimulus Working Group Activities:
A Paper was presented by SIA to the Working Group prior to JSTC Meeting
Paper described bail-out scenarios, suggested definitions of key terms, and described the consistency of a review of government bailout subsidies for the memory sector with the WTO
ESIA also presented a paper on State Guarantees for the Semiconductor Industry
At Yesterdays Working Group Meeting we Had a Discussion of Potential Tasks to be Undertaken
Task 1 -- List government assistance that should be clearly allowed such as General governmental assistance to revive the economy, and locational subsidies

7. Regional Subsidies
Task 2 -- List “bailout measures” that are not consistent with GAMS and WSC mandate, such as: Debt-to-equity swaps on terms that are inconsistent with normal commercial practice, and Grants provided to a troubled company by a government to cover operating losses.

8. Regional Stimulus
Task 3 -- List of covered products starting with commodity memory
Task 4 -- Consider how to handle Bail-Out Assistance Given to Companies that Make Memory and Non-Memory Products.
Task 5 – Draft introductory language for the report.

9. Regional Stimulus Concerns Raised at meeting included:
How to define a subsidy and whether this was a subject better handled by WTO experts committees
Whether to include a concept of injury as related to subsidies
The fact that allowable subsidies should only be those broadly available.
Whether one time bailout should be allowed under some circumstances
What information GAMS was asking the WSC to provide

10. Regional Stimulus Work Plan at This Point
Continue JSTC existing prescribed work plan
2010 JSTC Minutes specified: Semiconductor Industry Association in US will lead working group to collect further information on this topic and to prepare report for WSC to provide to the 2011 GAMS.
Meeting of Counsel within 30 days to map out principles (Washington, D. C.):
Permitted stimulus measures
Bailout measures that are not consistent with WSC and GAMS mandate
Products, etc.
Prepare Report to WSC, and paper for WSC to provide to GAMS
Paper for GAMS by May 1