RE149 Q1 2025 Market Insights V3 - Flipbook - Page 5
Key U.S. Semiconductor Tariffs & Policies
Trade tariffs in the U.S. semiconductor industry refer to government-imposed duties on imported semiconductor components,
chips, and related materials. These tariffs are often used as a tool to protect domestic semiconductor manufacturers, counter
foreign subsidies, and reduce dependency on specific countries like China and Taiwan. However, they also have significant
consequences for global supply chains, production costs, and technological innovation.
Key U.S. Semiconductor Tariffs & Policies
1.
Tariffs on Chinese Semiconductors
Since the Trump administration, the U.S. has imposed tariffs on Chinese-made chips and semiconductor
equipment as part of the trade war.
In 2018, the U.S. imposed a 25% tariff on Chinese semiconductors under Section 301 of the Trade Act. The Biden
administration has maintained these tariffs and initiated new investigations into Chinese legacy chips, which could lead
to further restrictions.
2.
Potential Tariffs on Taiwan & South Korea
The U.S. is considering imposing up to 100% tariffs on Taiwan Semiconductor Manufacturing Company (TSMC) and
other Taiwanese chipmakers.
South Korea’s semiconductor industry (Samsung & SK Hynix) could also face increased tariffs as the U.S. pushes for
domestic chip production.
3.
Tariffs on Semiconductor Equipment
The U.S. has imposed restrictions on the export of advanced chip-making tools (e.g., lithography machines) to
China.
Companies like ASML, Nvidia, and AMD have been restricted from selling advanced semiconductor technology to Chinese
firms.
Implications of Semiconductor Tariffs
•
Increased Manufacturing Costs
•
Shift Toward Domestic Manufacturing
•
China’s Response & Supply Chain Disruptions
Industry Responses and Investments
Nvidia’s Expansion: In response to these tariffs, Nvidia plans to significantly expand its U.S. supply chain, potentially
investing several hundred billion dollars in domestic chip and electronics manufacturing over the next four years.
CHIPS Act Developments: The CHIPS Act has been instrumental in attracting substantial investments in U.S. semiconductor
manufacturing. Notably, Taiwan Semiconductor Manufacturing Company (TSMC) committed $100 billion to its Arizona facilities,
enhancing U.S. national security by bolstering domestic chip production.
Market insights
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