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Home > News > Company News > SEMI objects to China tariffs

SEMI objects to China tariffs

  • Author:Ella Cai
  • Release on:2018-07-30
SEMI has objected to tariffs on Chinese imports used by the semiconductor manufacturing equipment industry

SEMI’s Jonathan Davis has called for the removal of 29 tariff lines covering items critical to semiconductor manufacturing including machines and spare parts used to make, wafers, flat panel displays and masks.

Davis stressed that while SEMI supports stronger protections against the theft of IP, tariffs do little to address U.S. concerns over IP loss.

Davis’ comments were made to a panel consisting of  representatives from the U.S. Trade Representative (USTR), Departments of Treasury, Commerce, State and Defense, and the Council of Economic Advisers.

Joe Pon of Applied Materials told the panel  that the proposed tariffs will harm small and mid-sized companies and other U.S. business interests.

Describing the tariffs as a tax on exports of high-value U.S. goods, Pon said the duties give non-U.S. firms an unfair competitive advantage.

SEMI reckons the tariffs will also affect the semiconductor industry by imposing  higher operating costs, fewer exports and slower innovation.

The tariffs will curb industry growth and put thousands of high-paying, high-skill jobs at risk, said  SEMI, which  pressed congressional leaders to reject the tariffs and support a push for congress to re-assert itself on trade policy.

SEMI estimates that a recent list of proposed tariffs, covering about $16 billion in Chinese goods, will cost its 400 U.S. members more than $500 million annually in additional duties.

Earlier tariffs covering $34 billion in Chinese goods, which took effect  on July 6, impact products such as test and inspection equipment as well as spare parts that enter the U.S. from China. That round of tariffs will cost SEMI member companies an estimated tens of millions of dollars.

SEMI encourages members to review the newly released $200 billion tariff list, determine any impact to their businesses and share their findings with SEMI’s public policy team.