SHANGHAI—The Chinese Semiconductor Industry Association (CSIA), a major trade association for China’s chip industry, will establish a working group with its U.S-based counterpart, the organization announced on Thursday. The announcement on the CSIA website comes at a time when China is concerned about reliance on U.S. intellectual property, and the United States leans on China-based manufacturing in its supply chain. The CSIA said in its post it would form a joint working group with Washington-based Semiconductor Industry Association (SIA), with each side being represented by 10 chip companies. The working group will meet twice a year to discuss issues such as intellectual property, trade policy, and encryption. The date of the first meeting and the companies involved were not specified. The SIA did not respond to a request for comment. The website of the SIA made no mention of the working group. China is the world’s largest purchaser of semiconductors. …