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While the U.S. has temporarily spared chips from tariffs, Beijing’s heavy retaliatory levies on U.S. semiconductors create uncertainty in the sector. But according to TechNews and Chinese media outlet mydrivers, chips from Qualcomm, Intel, and Texas Instruments may soon get a pass — with storage chips still off the exemption list for now.
According to industry sources cited by TechNews, China is planning to exempt import tariffs on products under customs code 8542 — which covers semiconductors.
In detail, eight related codes are now exempt, meaning certain U.S. chips once hit with 125% tariffs can enter China duty-free, as per Liberty Times, citing Chinese media reports.
Mydrivers reveals that several chip categories, such as those with control functions (HS code 854231), amplification functions (854233), and miscellaneous functions (854239), are no longer subject to the additional duty.
However, those imported goods classified under HS code 854232, which are integrated chips with storage functions, are still subject to the 125% tariffs, the report adds.
On April 11, the China Semiconductor Industry Association stated that, packaged or not, the origin of integrated circuits should be based on the wafer fabrication site — a rule that puts added pressure on U.S.-made chips during customs clearance.
However, signs suggest the tide may be turning. Sources cited by TechNews point to two key reasons behind China’s rumored tariff shift: growing pressure to match the U.S.’s chip exemptions as trade talks pick up, and the need to keep U.S. chips flowing to support China’s own tech goals.
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