Big news in the tech world! The China Semiconductor Industry Association (CSIA) clarified that China's retaliatory tariffs on U.S. imports only affect chips produced in U.S.-based wafer fabs. This means chips manufactured in the Taiwan region or by companies in South Korea are not hit by these tariffs. 😎
According to CSIA, the “country of origin” for integrated circuits is determined by where the wafer fabrication takes place—not where final packaging or design occurs. So, popular chips like AMD CPUs and Nvidia GPUs that are produced in the Taiwan region bypass the tariff measures.
On the flip side, chips built in U.S.-based fabs by companies such as Intel and Texas Instruments will continue to face tariffs. Market reactions reflected these changes: shares of AMD and Nvidia jumped by 6% and 2.6% respectively, while Intel saw a decline of over 6%. 📉
In a bid to counter U.S. measures, Beijing increased tariffs on U.S. imports to 125% this Friday—a move that has taken many by surprise. Experts, including He Hui from tech research firm Omdia, noted that this clarification might boost domestic chipmaking as foreign semiconductor firms adopt a "China for China" strategy. 🚀
This development shows how nuanced trade policies can influence global tech markets and reshape supply chains. Stay tuned for more updates!
Reference(s):
China's tariff on chips is not as widespread as you might think
cgtn.com
