US chipmakers that outsource manufacturing will be exempt from China's retaliatory tariffs on US imports, said a main Chinese semiconductor association on WeChat, Reuters reports.
Given the highly specialised and multi-country nature of chip supply chains, there was uncertainty within the industry about how tariffs would be applied to chip imports.
'For all integrated circuits, whether packaged or unpackaged, the declared country of origin for import customs purchases is the location of the wafer fabrication plant,' said the state-backed China Semiconductor Industry Association (CSIA).
For US chip designers such as Qualcomm and AMD that outsource manufacturing to Taiwanese chipmaking giant TSMC, Chinese customs authorities will classify these chips' place of origin as Taiwan, according to EETop, an information platform and forum for Chinese chipmakers.
This means China-based companies importing their chips will not be forced to pay China's retaliatory tariffs on US imports, EETop said on WeChat.
SeaNews Turkey
Given the highly specialised and multi-country nature of chip supply chains, there was uncertainty within the industry about how tariffs would be applied to chip imports.
'For all integrated circuits, whether packaged or unpackaged, the declared country of origin for import customs purchases is the location of the wafer fabrication plant,' said the state-backed China Semiconductor Industry Association (CSIA).
For US chip designers such as Qualcomm and AMD that outsource manufacturing to Taiwanese chipmaking giant TSMC, Chinese customs authorities will classify these chips' place of origin as Taiwan, according to EETop, an information platform and forum for Chinese chipmakers.
This means China-based companies importing their chips will not be forced to pay China's retaliatory tariffs on US imports, EETop said on WeChat.
SeaNews Turkey
