Hey tech fans, here’s a hot update from the semiconductor arena! The China Semiconductor Industry Association (CSIA) clarified that China’s retaliatory tariffs only target chips manufactured in U.S.-based fabs – while chips produced in the Taiwan region and South Korea dodge these tariffs. In simple terms, the country of origin is determined by where the chip’s wafer is fabricated, not where it’s packaged. 😊
This means popular chips, such as those powering AMD CPUs and Nvidia GPUs, enjoy smoother sailing because they’re made in the Taiwan region. Meanwhile, U.S.-made chips from fabs operated by companies like Intel and Texas Instruments will still face hefty tariffs, which partly explains why AMD and Nvidia shares jumped by 6% and 2.6% respectively, even as Intel dipped by over 6%.
The move comes amid Beijing’s decision to boost tariffs on U.S. imports to 125%, a clear response to higher duties imposed on Chinese goods. Tech experts, including He Hui from research firm Omdia, see this clarification as a game-changer that might accelerate a 'China for China' strategy by benefiting domestic chipmakers and strengthening local supply chains. 🚀
For young professionals and tech enthusiasts across South and Southeast Asia, this is a prime example of how global trade dynamics can reshape markets and spark innovation in the tech world. Stay tuned as these trends continue to evolve in our fast-paced digital era!
Reference(s):
China's tariff on chips is not as widespread as you might think
cgtn.com
