The China Semiconductor Industry Association (CSIA) issued an urgent notice regarding the determination of the "country of origin" for semiconductor products, particularly integrated circuits (ICs). The key point is that the country of origin is determined by the location of the wafer fabrication facility, not the location of packaging or final assembly. This change could impact U.S. chip manufacturers exporting to China, potentially leading to higher tariffs if the chips are fabricated in the U.S., according to an analysis posted on X.
Here's a breakdown:
- New Rule:
The country of origin for ICs, whether packaged or unpackaged, is now determined by the location of the wafer fabrication facility. - Impact on U.S. Chipmakers:
U.S. companies like Intel, Texas Instruments, GlobalFoundries, and Micron, which fabricate chips domestically, could face higher tariffs when exporting to China, especially if the chips are not subsequently packaged in the U.S., according to an analysis posted on X. - Impact on Other Companies:
Companies like Qualcomm, Nvidia, and AMD, which primarily outsource wafer fabrication to TSMC in Taiwan, are likely to see less impact because the chips are fabricated outside the U.S., according to an analysis posted on X. - Potential Consequences:
This change could disrupt the business operations of U.S. chipmakers in China and potentially enhance the competitiveness of Chinese semiconductor firms in their domestic market, according to an analysis posted on X.