An employee showcases a semiconductor integrated circuit at an industry expo. Photo: VCG

China’s Semiconductor Industry Association (CSIA) said that for its New Year wish, it hopes that the Biden administration will consider the interests of semiconductor companies across the world and bring the US-China trade relationship back to normal, according to a statement released by the CSIA on Monday.

In its statement, the CSIA said that 2020 was a year of challenges for the global semiconductor industry because of the COVID-19 pandemic and geopolitical tensions, and it hopes that the US, as the leader of the industry, will help establish a fair and just business environment for semiconductor companies. 

"The US is still dominating the development of global semiconductor technology,” the CSIA said. “Semiconductor companies in the US account for nearly 50 percent of the global market, bringing the US steady profits and more than 1 million jobs.”

In 2020, the supply chain of the semiconductor industry was put under severe pressure, causing a serious chip shortage for cars, phones and televisions. In January this year, several automakers, including Ford, Fiat Chrysler and Nissan, announced that they would cut output due to the lack of chips. Volkswagen also said that it would adjust production because of the squeezed supply.

Major smartphone and game console makers, such as Apple and Sony have also been affected by the chip supply situation, according to media reports. 

While the constraints on the sector are partly due to the pandemic, geopolitical tensions have also had an impact. At the end of last year, the US Commerce Department added China's leading chipmaker Semiconductor Manufacturing International Corp (SMIC) to its Entity List.

The semiconductor industry group in the US, the Semiconductor Industry Association (SEMI), has also urged the US Department of Commerce to reconsider its export restrictions aimed at China, noting that they will harm American companies in the long run.