"The proclamation follows a nine-month investigation under section 232 of the Trade Expansion Act of 1962 and targets a number of high-end semiconductors meeting certain performance benchmarks and devices containing them for import duties. The action is part of a broader effort to create incentives for chipmakers to produce more semiconductors in the US and decrease reliance on chip manufacturers in places like Taiwan."
"The United States currently fully manufactures only approximately 10 percent of the chips it requires, making it heavily reliant on foreign supply chains, the proclamation said, adding that the reliance was a significant economic and national security risk. The White House said in a fact sheet that the tariffs will be narrowly focused and will not apply to chips and derivative devices imported for US datacenters a huge consumer of AI chips startups, non-datacenter consumer applications, non-datacenter civil industrial applications and US public sector applications."
The United States imposed a 25% tariff on certain high-end AI chips, including the Nvidia H200 and AMD MI325X, under a national security proclamation. The move follows a nine-month Section 232 investigation of semiconductors under the Trade Expansion Act of 1962. The tariffs target semiconductors meeting specific performance benchmarks and devices containing them. The goal is to incentivize domestic chip production and reduce reliance on foreign suppliers, as the US currently manufactures about 10% of needed chips. Exemptions exclude chips for US datacenters, startups, non-datacenter consumer and industrial applications, and public sector uses, with the commerce secretary authorized to grant further waivers. Shares of major chipmakers fell slightly in after-hours trading.
Read at www.theguardian.com
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