I haven’t seen this discussed elsewhere or here yet. Basically, China has changed its rules strategically to consider any product with a microprocessor fabricated in the U.S. to be U.S.-originated, and hence tariffed at 125%.
This has uprooted supply chains overnight, giving much more advantage to any company that has their fabrication outside the United States and the general trade war.
That immediately disadvantages United States chip fabrications and cripples the ability for semiconductor brands to do wafer fabrication on-shore in America. This particularly hits Intel and Texas Instruments.
At least it’s being consistent with its “one China” policy, as it considers chips fabricated in Taiwan as being fabricated natively and hence, it skips tariffs.
How badly does the affect Trump’s attempt to re-shore high tech production?
https://www.benzinga.com/markets/25/04/44777482/trump-tariff-wars-chinas-new-rule-to-exempt-nvidia-qualcomm-and-others-from-levies-but-these-chip-companies-will-be-hit-with-125-tariffs?
Posted by Mimir_the_Younger
14 Comments
Wow great find!
sounds like a positive for tsmc and nvda. Given most of their facilities are in taiwan
So, China says ‘one China’ and suddenly Taiwanese chips are homegrown heroes, while U.S. chips are the enemy.
It’s like a geopolitical magic trick—poof, and your supply chain is toast!
but tscm is opening a factory in the us?
China is proving to be very good at this game.
What more important when this going to end?
China: Okay stupid Yankee you want to make in your big mega awesome USA? Here ya go
Might get my TXN put to print after all.
Clever girl. Thinking Jurassic Park
Outwit, Outplay, Outlast. Thinking Survivor TV Series
Wanted to get my kids upgraded pcs, can’t work out which way gpu prices will go in Australia with all this tariff rot. At first I thought we would be flooded with cheap goods because they can’t be sold n USA, but seems more like with the playstation, with prices lifted everywhere else since the USA margins no longer exist
That is an interesting approach that is internally consistent. If and or when China takes Taiwan it will get even more interesting.
Very, very clever… teehee!
But then if China considers Taiwan as part of China, the tariff doesn’t apply to those? Am I right or wrong?
China has not modified its rules of origin.
According to [China’s rules of origin for imports and exports formulated in 2004](https://www.reddit.com/media?url=https%3A%2F%2Fpreview.redd.it%2F%25E5%258F%25B0%25E7%25A7%25AF%25E7%2594%25B5%25E4%25BD%25A0%25E7%259C%258B%25E5%25A5%25BD%25E4%25BA%2586-%25E5%25A4%25A7%25E5%2593%25A5%25E6%2598%25AF%25E6%2580%258E%25E4%25B9%2588%25E7%2585%25A7%25E9%25A1%25BE%25E4%25BD%25A0%25E7%259A%2584-v0-8y68l9psb6ue1.jpeg%3Fwidth%3D1066%26format%3Dpjpg%26auto%3Dwebp%26s%3D363e02f00df05f9f27cbc2ff7566caefff431fd0), goods produced with the participation of two or more countries (regions) are originated in the country (region) where the last substantial change was accomplished.
Thus where the wafer is substantially processed into a chip is the place of origin.
That is, in Taiwan, South Korea, Ireland and other places wafer factory.
The later packaging test does not substantially change the nature of the chip.