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The tax applies to specific chips like the Nvidia H200 and AMD MI325X, but there are some exceptions to this rule. The tax will not be applied if the chips are brought into the US with the intention of boosting local semiconductor production, or if they are used in data centers, new startups, or research and development activities.
The US currently meets about 10% of its semiconductor requirements through domestic production. The nation lacks sufficient capacity to manufacture chips, along with essential manufacturing equipment like advanced lithography and etching tools, and related products, which are necessary to fulfill its domestic needs. The proclamation highlights that this lack of capacity has led to the country relying heavily on foreign sources.
Bloomberg reports that the 25% tax on certain advanced semiconductors was a major part of the White House's deal with Nvidia Inc. This agreement allowed Nvidia to supply China with H200 processors produced by Taiwan Semiconductor Manufacturing Co. According to an executive order signed by Trump on January 14, US officials will apply the tax to the chips once they arrive in the US, before they are sent to Chinese customers or other international markets.
source: bloomberg.com
The US currently meets about 10% of its semiconductor requirements through domestic production. The nation lacks sufficient capacity to manufacture chips, along with essential manufacturing equipment like advanced lithography and etching tools, and related products, which are necessary to fulfill its domestic needs. The proclamation highlights that this lack of capacity has led to the country relying heavily on foreign sources.
Bloomberg reports that the 25% tax on certain advanced semiconductors was a major part of the White House's deal with Nvidia Inc. This agreement allowed Nvidia to supply China with H200 processors produced by Taiwan Semiconductor Manufacturing Co. According to an executive order signed by Trump on January 14, US officials will apply the tax to the chips once they arrive in the US, before they are sent to Chinese customers or other international markets.
source: bloomberg.com
