China redefines semiconductor country of origin amid trade war | Al Mayadeen English
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The China Semiconductor Industry Association announced on Friday a major revision to its rules regarding the country of origin for semiconductors, now requiring that the location of the manufacturing facility — not the site of assembly — will determine a product’s origin.
“According to the provisions related to the rule of definition of the country of origin of goods without benefits, the place of creation of the integrated circuits will be defined on the basis of the principles of change of the four-digit tariff number, which means that the place of production will be considered as the place of origin,” the association said in a statement.
Under the new rules, manufacturers bringing semiconductors into China must list the country where the production factory is located in their customs declaration, regardless of where the microchips were packaged. Previously, companies were allowed to declare the country of final assembly as the origin.
Experts cited by China’s NetEase news portal noted that the rule change will have varied impacts on American firms. Companies like Nvidia, Apple, Qualcomm, and Marvell, which largely manufacture and test their products in Asia, are expected to experience minimal disruption.
Meanwhile, companies with substantial production operations within the United States, including Intel, GlobalFoundries, Texas Instruments, and Micron, are likely to face negative consequences, particularly with the imposition of new import tariffs.
