US Considering Expanding Sanctions on China’s Semiconductor Processes – TechNews Report

The US is reportedly considering expanding sanctions on China’s mature semiconductor processes, according to a report from TechNews. This expansion would involve imposing tariffs and strict enforcement of determining the chip’s origin, tracing back to the front-end manufacturing and photomask origin rather than just the final packaging point.

It is believed that after the presidential election, the US will escalate the trade war and intensify export restrictions on China. Currently, tariffs of over 10% are being imposed on products from countries other than the US, with plans to impose tariffs of 60% or higher on Chinese goods.

The US government has already announced tariffs on Chinese electric vehicles, semiconductors, lithium batteries, and other products. The semiconductor tariff rate is set to increase from 25% to 50% by 2025.

While tariffs can encourage domestic production in industries like semiconductors, computer equipment, and steel, the costs could outweigh the benefits. Tariffs lead to higher prices for US consumers and factories that rely on foreign inputs and reduce exports of certain US goods facing retaliatory measures.

There are concerns that chips manufactured in Taiwan and South Korea may also face tariffs in the future due to the ongoing US-China tech war. China’s expansion in mature processes has raised global concerns about overcapacity, prompting the US to consider tariff barriers to prevent products containing chips made with Chinese mature processes from being sold overseas at low prices.

The US is also considering the “Foreign Direct Product Rule” (FDPR) to control products using US technology. Companies like Tokyo Electron and ASML have been warned that if they continue to supply advanced chip technology to China, the US will impose strict trade control measures.

The determination standard for chip origin may change to include whether the chip and photomask were manufactured in China. The potential expansion of export restrictions and tariffs on Chinese semiconductor processes could have significant implications for the global tech industry.