US trade officials determined that China should be penalized for employing unfair tactics to dominate the semiconductor industry, but would wait 18 months to impose tariffs, US authorities said on Tuesday.
A US Trade Representative (USTR) investigation concluded China’s targeting of semiconductors “for dominance is unreasonable and burdens or restricts US commerce and thus is actionable,” the agency said in a public notice.
The current tariff level of zero would be increased “in 18 months on June 23, 2027, to a rate to be announced not fewer than 30 days prior to that date,” it said.
Photo: Reuters
Beijing yesterday said it “firmly opposes” the move and accused Washington of abusing tariffs to “unreasonably suppress Chinese industries.”
The move “disrupts the stability of the global supply chain, hinders the development of all countries’ semiconductor industries and harms others while hurting itself,” Chinese Ministry of Foreign Affairs spokesman Lin Jian (林劍) said.
“We urge the United States to quickly correct its erroneous practices,” Lin told a regular news briefing.
USTR officials launched the probe in December last year in the final weeks of then-US president Joe Biden’s term, extending the initiative when US President Donald Trump took office in January.
Trump has been a prolific purveyor of tariffs, unveiling sector-specific levies on steel, autos and other items as well as broader measures to achieve a variety of policy objectives.
The White House has jousted with Beijing, but reached a broad truce with China after a major escalation in the spring.
The USTR’s “Section 301” probe concluded that China had employed “increasingly aggressive and sweeping nonmarket policies” to dominate semiconductors that have included “massive and persistent” state support of private actors and “wage-suppressing labor practices.”
The USTR did not respond to a query on the reason for the 18-month time frame on tariffs.
ENERGY ISSUES: The TSIA urged the government to increase natural gas and helium reserves to reduce the impact of the Middle East war on semiconductor supply stability Chip testing and packaging service provider ASE Technology Holding Co (日月光投控) yesterday said it planned to invest more than NT$100 billion (US$3.15 billion) in building a new advanced chip testing facility in Kaohsiung to keep up with customer demand driven by the artificial intelligence (AI) boom. That would be included in the company’s capital expenditure budget next year, ASE said. There is also room to raise this year’s capital spending budget from a record-high US$7 billion estimated three months ago, it added. ASE would have six factories under construction this year, another record-breaking number, ASE chief operating officer Tien Wu
The EU and US are nearing an agreement to coordinate on producing and securing critical minerals, part of a push to break reliance on Chinese supplies. The potential deal would create incentives, such as minimum prices, that could advantage non-Chinese suppliers, according to a draft of an “action plan” seen by Bloomberg. The EU and US would also cooperate on standards, investments and joint projects, as well as coordinate on any supply disruptions by countries like China. The two sides are additionally seeking other “like-minded partners” to join a multicountry accord to help create these new critical mineral supply chains, which feed into
For weeks now, the global tech industry has been waiting for a major artificial intelligence (AI) launch from DeepSeek (深度求索), seen as a benchmark for China’s progress in the fast-moving field. More than a year has passed since the start-up put Chinese AI on the map in early last year with a low-cost chatbot that performed at a similar level to US rivals. However, despite reports and rumors about its imminent release, DeepSeek’s next-generation “V4” model is nowhere in sight. Speculation is also swirling over the geopolitical implications of which computer chips were chosen to train and power the new
TECH WINNERS: Taiwan and South Korea reported robust trade, which suggests that they have critical advantages in the rapidly expanding AI supply chain, an official said Exports last month surged to a new high, as booming demand tied to artificial intelligence (AI) infrastructure fueled shipments of advanced technology components, underscoring the nation’s pivotal role in the global semiconductor supply chain. Outbound shipments climbed to US$80.18 billion, the highest ever for a single month, rising 61.8 percent from a year earlier and marking the 29th consecutive month of growth, the Ministry of Finance said yesterday. “The surge was driven primarily by global investment in AI infrastructure,” Department of Statistics Director-General Beatrice Tsai (蔡美娜) said. The mass production of next-generation AI computing systems has accelerated procurement across the semiconductor supply
RSS