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With China Semiconductor Industry Association now saying chip origin should be based on where wafers are made, another major shakeup on semiconductors may be coming. Reuters and Tom’s Hardware report that U.S. chipmakers like Qualcomm and AMD, which outsource production to TSMC, could dodge China’s tariffs under this policy.
Meanwhile, the reports indicate this would spell trouble for Intel, GlobalFoundries, Texas Instruments, and any chipmakers still producing on U.S. soil, as chips will be classified by Chinese customs as originating from the place of fabrication. Companies like Analog Devices, NXP, and ON Semiconductor could also take a hit, according to Tom’s Hardware.
On the other hand, the reports suggest that China’s latest move could steer more global chip orders toward TSMC and other second-tier foundries like Taiwan’s UMC and TSMC affiliate Vanguard, as it forces companies still using U.S.-made chips to scramble for new suppliers.
However, as highlighted by Commercial Times, switching fabs means costly re-taping processes. Therefore, electronics manufacturing service (EMS) providers, racing against Trump’s tariff clock, may also turn to second-source chip suppliers for a quick fix, benefiting IC design houses like Silergy, whose products closely align with TI’s and have a strong presence in the Chinese market, the report adds.
According to Science and Innovation Express News and Security Daily, the China Semiconductor Industry Association advised last Friday that whether packaged or not, the origin of integrated circuits should be declared based on the location of the wafer fabrication plant during import customs clearance.
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(Photo credit: Intel)
