Trump Tariff Wars: China's New Rule To Exempt Nvidia, Qualcomm And Others From Levies, But These Chip Companies Will Be Hit With 125% Tariffs
Benzinga (Sat, 12-Apr 2:23 AM)
On Friday, China's General Administration of Customs implemented a new rule that determines the country of origin for semiconductor products based on the location of wafer fabrication — not where the chips are designed, developed, or packaged.
What Happened: As a result of this development, chips designed by U.S.-based companies like Nvidia Corporation (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), and Qualcomm Inc. (NASDAQ:QCOM) but manufactured by foundries in Taiwan, such as Taiwan Semiconductor Manufactoring Co. Ltd (NYSE:TSM) and United Microelectronics Corporation (NYSE:UMC), will be exempt from China's 125% retaliatory tariffs on U.S. imports, reported Tom's Hardware.
However, this rule delivers a blow to U.S. chipmakers like Intel Corporation (NASDAQ:INTC), GlobalFoundries (NASDAQ:GFS), and Texas Instruments (NASDAQ:TXN), which fabricate their chips domestically.
Products from these companies will now face the full brunt of China’s import tariffs, dramatically impacting their competitiveness in the Chinese market.
See Also: Qualcomm Expands ...
