- Micron, Qualcomm, and TI request tariff exemptions
- US considers 25% tariffs on semiconductor imports
What happened: US chipmakers urge tariff reconsideration
Micron Technology, Qualcomm, and Texas Instruments have formally requested exemptions from proposed US import tariffs on semiconductors. The tariffs, suggested under a ‘Section 232’ investigation, aim to impose duties of 25% or more on imported chips and related materials. The companies argue that such tariffs would increase costs and disrupt supply chains. They emphasise the importance of maintaining competitiveness in the global semiconductor market. The request follows a similar appeal from Taiwan Semiconductor Manufacturing Company (TSMC), which also seeks relief from the impending tariffs. The US government is currently reviewing these requests as part of its broader trade policy considerations.
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Why it’s important
The proposed tariffs could significantly affect the US semiconductor industry. Increased import duties may lead to higher production costs for companies relying on global supply chains. This could result in reduced competitiveness of US chipmakers in the international market.
Furthermore, the tariffs might prompt companies to reconsider their manufacturing strategies, potentially leading to shifts in global production locations. The industry’s response underscores the interconnected nature of semiconductor manufacturing and the potential ramifications of trade policy changes.
