China's new chip origin rule spares U.S. designers like Nvidia, AMD, and Qualcomm from 125% tariffs by exempting Taiwan-fabricated chips, while penalizing U.S.-based manufacturers like Intel, GlobalFoundries, and Texas Instruments, reshaping the global semiconductor supply chain.
Shares of analog chip manufacturer Texas Instruments (NASDAQ:TXN)
fell 8.3% in the morning session after China Semiconductor Industry Association issued an emergency directive detailing new methods for verifying the origin of imported chips. According to reports, the location of the wafer fabrication plant would define the origin of imports when tariffs are applied. This meant that companies with manufacturing facilities in the US might be severely affected by the escalating US-China trade tension.
Let's take a look at the S&P500 stocks that are experiencing notable price gaps in today's session on Friday. Discover the gap up and gap down stocks in the S&P500 index.
Hitting a new 52-week low can be a pivotal moment for any stock.
These floors often mark either the beginning of a turnaround story or confirmation that a company faces serious headwinds.
A Reuters report cited a recent notice posted by the CSIA on its WeChat account in which the association noted that the country of origin for semiconductor chips would be the location of the wafer fabrication facility.
Shareholders of Texas Instruments would probably like to forget the past six months even happened. The stock dropped 22.9% and now trades at $156. This might have investors contemplating their next move.
Shares of analog chip manufacturer Texas Instruments (NASDAQ:TXN)
fell 6.3% in the afternoon session after China imposed a 34% tariff on all U.S. imports amid escalating trade war tensions. This was especially rough for the US chipmakers because a big chunk of their business leans on demand out of China. The new tariffs not only threaten to erode profit margins but also risk reducing market share.
The brokerage called the Trump administration’s tariffs “convoluted and virtually impossible to assess completely,” largely because of the semiconductor industry’s complex supply chain.
