Regulatory Restrictions Export and/or Import Regulatory Restrictions Report to JSTC Shanghai, February 2011 Semiconductor Industry Association in China

※WSC Statement May 2010 Export and/or Import Regulatory Restrictions   To further "free and open" markets, the WSC has asked its JSTC to examine regulatory restrictions on exports and/or imports and their potential to affect commercial trade in semiconductors and report its findings at the next WSC meeting. Semiconductor Industry Association in China

※Findings and concerns on affecting commercial trade in semiconductors : Each govenment/authority regulates export/import matters differently out of its concern on national security on dual use of semiconductor equipment/tool, part, and technology; Some govenment/authority’s related regulations and control lists have been considered as out-of-dated; Industry shows its concern on over-burdened responsiblities and obligations and complicated policy and procedures for applying export license from some regions; Industry indicates uncertainty of result for semiconductor firms to predicit on purchasing semiconductor quipment/tool resulting in delay on cycle of production and sales; (To be continued in the next page) Semiconductor Industry Association in China

Different control lists for different regions even within Wassanaue Arrangement cause confusion for some regions; Export control issues raised similar concers from various NGOs or trade organizations such as SEMI; and Export control issues have become heated issues among different governments/authorities from various regions. Semiconductor Industry Association in China

※Recommendation to WSC: Scope of concerns: Semiconductor equipment/tool (commercial/civilian use) In order to make WSC effort on resolves its concern on the export/import restriction subject effeciently, it is recommended to narrow down the scope of this subject on semiconductor equipment/tool for commercial/civilian use and deal with its related issues out of the following reasonings: Tangible and convenient to tackle issues; Impact accorss countries/regions; and Similar concerns from different NGOs. Semiconductor Industry Association in China

※Proposed Text to be inserted in WSC Joint Statement on Export/Import Restriction While recognizing and respecting export/import control in various regions for various needs, in order to align with the spirit of the free and open market of the WSC, furhter advancing the fair and healthy growth of semicondcutor industry globally, the WSC proposes the following items on liberating export/import control on commercial/civilian IC equipments/tools : To liberate the import/export restriction relating to IC equipments/tools to promote the spirit of the free and open market; To streamline and/or expedite the procedure of issuing export license; To maintain the transparency of the export license control policy; To unify the different policy on export control within each region; To regularly submit industry proposals for improvements and changes to decontrol IC equipments/tools at each regions; To lobby on each government/authority of each regions to decontrol and liberate export control policy; and To outreach to industry and government/authority to organize events, if needed. Semiconductor Industry Association in China