[News] Chip Tariff Window Closes Wednesday Amid Quiet Pushback, Sparking Steep Rate Fears

As the public comment window for the U.S. Section 232 semiconductor probe closes this Wednesday (May 7), the chip industry is holding its breath over whether tariffs are coming—and how steep they’ll be. However, as responses have been usually quiet, concerns have been sparked on the lack of pushback could be seen by the Trump camp as a green light for imposing the tariffs, according to the Economic Daily News.

Meanwhile, Commercial Times suggests that Trump could unveil steep tariffs on imported chips as early as this week, with rates rumored to range from 25% to 100%. Analysts cited by the report believe the new tariffs may be based on the “wafer-out” location — essentially where the chips are actually made.

The Economic Daily News, citing the U.S. Department of Commerce, reports that previous investigations on copper and lumber received widespread public feedback, with nearly 300 comments on lumber tariffs alone.

In contrast, only ten comments have been submitted for the semiconductor tariffs during the public comment period, which raises concerns that the chances of semiconductor tariffs being imposed could increase, the report adds.

Potential Impact on Global Chip Industry

On April 16, the U.S. Secretary of Commerce launched an investigation under Section 232 to assess the national security risks of semiconductor imports, semiconductor manufacturing equipment (SME), and related products. The scope includes critical semiconductor components such as substrates, bare wafers, legacy chips, advanced chips, microelectronics, and SME components. Meanwhile, comments are due May 7.

As noted by Commercial Times, if chip tariffs are to be implemented, the move could significantly impact TSMC and Taiwan’s chip sector, especially if tariffs are based on the wafer-out location.

The report warns that high tariffs on Taiwan could prompt U.S. clients to shift orders to South Korea or Japan, or push China to speed up domestic chip production.

Commercial Times suggests that if tariffs are based on the wafer-out location, as rumored, some production may return to the U.S. But this shift could disrupt supply chains, extend lead times, and hurt both profits and the global edge of U.S. chipmakers, as per the report.

Read more

• [News] Samsung Faces High Tariff Risks as It Reportedly Hesitant to Bring in Chipmaking Tools for Taylor
• [News] TSMC Reportedly Plans 30% Price Hike for 4nm Chip Production at Arizona Plant

(Photo credit: Intel)