Several Chinese semiconductor companies report minimal impact from the recent US import tariffs. This comes after China raised duties on American goods to 84% in response to the new US measures.

Cambricon Technologies said overseas revenue made up less than 1% of its total in 2023 and 2024. The company was already limited internationally after being added to the US Entity List in 2022.

Loongson Technology also reported no negative effects, citing its focus on independent R&D and a self-sufficient supply chain.

Leaguer Microelectronics said it sources most materials domestically and earns all revenue within China.

🔗 Source: SCMP

🧠 Food for thought

1️⃣ China’s semiconductor self-sufficiency strategy cushions tariff impact

The minimal effect reported by Chinese chipmakers reflects China’s long-running efforts to reduce foreign dependencies in response to earlier US restrictions.

China’s semiconductor self-sufficiency rate was just 16% in 2020, with the country importing $350 billion worth of chips, more than its oil imports. This highlights why domestic supply chain development became a strategic priority 1.

Companies like Cambricon were already adapting to significant restrictions after being placed on the US Entity List in 2022, forcing them to reduce US dependencies well before the current tariff escalation.

Loongson Technology’s emphasis on “independent research and development” and “self-controllable supply chains” illustrates how Chinese firms have been reorienting their operations toward domestic resources for years.

This strategy aligns with China’s broader push to develop its semiconductor ecosystem in response to US export controls, which targeted areas like EDA tools that are crucial for chip design 2.

Despite these challenges, Chinese companies have made progress in advanced manufacturing, with SMIC achieving 7nm chip production by mid-2022 despite facing US sanctions 1.

2️⃣ Semiconductor equipment manufacturers face greater tariff vulnerability than chip designers

The contrasting impacts across the semiconductor value chain explain why some firms feel minimal effects while others face significant disruption.

Chinese fabless chip designers like those mentioned in the article are less directly affected by tariffs because they primarily operate in the domestic market and have already adjusted to earlier US restrictions.