INSUBCONTINENT EXCLUSIVE:
Chinas vindictive tariffs on American imports is limited to chips manufactured in the United States , while chips made from the countrys
Taiwan area and South Korea are not impacted, according to a clarification from the China Semiconductor Industry Association (CSIA) on
Friday.CSIA, representing the countrys leading chip business, specified that the country of origin for integrated circuits would be
identified by the area of the wafer fabrication facility (fab), not the final product packaging or design location.Chips like AMD CPUs and
Nvidia GPUs, produced in Chinas Taiwan, will not be classified as stemming from the United States , bypassing Chinas retaliatory
tariffs.However, chips made in United States -based fabs by companies like Intel and Texas Instruments will still face tariffs.Shares of AMD
and Nvidia increased 6 percent and 2.6 percent respectively, while Qualcomm was up 1.1 percent.Intel on the other hand fell more than 6
The business is among the biggest manufacturers of desktop computer chips and the only American semiconductor firm gearing up to make the
most innovative processors in the United States.Beijing on Friday increased its tariffs on United States imports to 125 percent, hitting
back versus United States President Donald Trumps decision to trek duties on Chinese goods to 145 percent.After CSIAs clarification, the
possibility of high tariffs on United States -origin chips resulted in a rise in Chinese chipmakers shares on Friday
The notice from CSIA assists identify which United States chips will be hit with tariffs, stated He Hui, semiconductor research director
at tech research business Omdia, It is clear that some chips made in the United States will still be taxed even if they are packaged in
He included that this might benefit Chinas domestic chipmaking and its supply chains as foreign semiconductor companies pursue a China for
China method -- manufacturing for the Chinese market in China.Bernstein analysts informed Reuters that CSIAs relocation was a big surprise
to the marketplace as financiers usually considered the location of packaging to be the native land, not the fab, and it was way more
difficult to move fabs.(With input from Reuters)
