China’s top chipmakers, including Semiconductor Manufacturing International Corp (SMIC), are expected to avoid the worst of US President Donald Trump’s plan to impose 100 per cent tariffs on imported semiconductors.
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According to a research note published by CLSA, the potential impact of the proposed US tariffs on imported chips – the details of which are expected as soon as next week – would be small for SMIC and Hua Hong Semiconductor.
The two Shanghai-based firms could also benefit from possible countermeasures that China and other countries could pursue, according to CLSA, without elaborating.
SMIC’s Hong Kong-listed shares closed up nearly 1 per cent on Thursday to HK$53, while Hua Hong’s stock rose 2.52 per cent to HK$44.78.
On Wednesday in Washington, Trump announced that the US would impose a 100 per cent tariff on imported semiconductors, although companies that were manufacturing in the country or had pledged to invest in new factories would be exempt.
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Those would include major tech companies such as Nvidia, Taiwan Semiconductor Manufacturing Co, Samsung Electronics, SK Hynix, Micron Technology and Apple, which committed on Wednesday to invest another US$100 billion into US manufacturing.
CLSA’s assessment reflected how China managed to increase the share of its integrated circuit (IC) exports, including memory chips, to countries in Southeast Asia, customs data showed.