86-755-88844016 +852 2632 9637 6*12 hours online call
SIA: Tariffs on electronic transmission will hit global semiconductor industry hard

Recently, the Semiconductor Industry Association (SIA) of the United States expressed its views on the issue of tariffs on electronic transmissions, when the 25-year-old tariffs on electronic transmissions, which are the basis of global digital trade, will be determined within a week.

The SIA believes that the WTO has not imposed tariffs on electronic transmissions since 1998. By creating a free zone for the cross-border flow of data, the tax exemption supports the rapid growth of global trade in Internet-related services, entertainment and goods.

While the tax exemption is vital to the global economy and must be extended, the SIA analysis presents serious risks to the moratorium as a handful of WTO opponents claim they need to raise taxes. Some WTO members may choose to go the tax route, imposing tariffs on nearly everyone who crosses borders digitally, including streaming music, software, social media and financial transactions.

SIA: Tariffs on electronic transmission will hit global semiconductor industry hard

SIA believes that in the context of the spread of the epidemic, inflation and the Russian-Ukrainian conflict, imposing tariffs on electronic transmissions will bring a major blow to the economy and is not conducive to trade liberalization.

The SIA noted that if digital transmissions were subject to tariffs, U.S. manufacturing and the entire global economy would suffer. Take the U.S. semiconductor industry, for example. Semiconductors are the most complex products in the world to develop, design, and manufacture. They depend on the seamless and frictionless flow of semiconductor research, design, software, and other data that flows uninterruptedly across national borders. . Without the tax-free flow of data over the past 25 years, we wouldn't be able to innovate today, enabling the semiconductor industry to integrate more than 50 billion transistors on a small chip and sell it in global markets.

The semiconductor industry, like other advanced industries, can only succeed and be competitive in an environment that allows R&D, design, engineering and manufacturing data to be protected and flow seamlessly across borders. If a tax increase is chosen, it could seriously affect the progress made after the passage of the competitiveness legislation currently under consideration in Congress.

The benefits of taxing digital flows are likely to outweigh the disadvantages. Countries that impose tariffs on data flows will lose more in consumer welfare and export competitiveness than they gain from new tariff revenue, according to an OECD report. Another report by ECIPE (European Centre for International Political Economy) found that "the loss of economic growth and the reduction in tax revenue from the imposition of tariffs on electronic transmissions outweighs the additional tariff revenue they generate".

Hot news
Rapidus collaborates with Esperanto to develop low-power AI chips
Rapidus, a Japanese wafer foundry startup, announced a memorandum of understanding with Esperanto, an American RISC-V architecture chip design company. The two sides will collaborate on the research and development of artificial intelligence (AI) semiconductors for data centers, jointly developing low-power AI chips.
Honda Motor et IBM concluent un partenariat pour développer conjointement des technologies automobiles intelligentes
Honda Motor Corporation et IBM ont récemment annoncé la signature d'un protocole d'accord qui permettra de collaborer à la recherche et au développement de technologies intelligentes telles que les puces et les logiciels pour les voitures du futur.
News reports that Samsung HBM3E chip has not passed NVIDIA verification
Memory giants Micron, SK Hynix, and Samsung sent samples of eight layer vertically stacked 24GB HBM3E to NVIDIA at the end of July, mid August, and early October 2023. Micron and SK Hynix HBM3E passed NVIDIA validation and received orders in early 2023, but Samsung HBM3E did not pass validation.
SK Hynix will produce Power Management (PMIC) chips for Tesla
​According to reports, SK Key Foundry, a contract manufacturing subsidiary of SK Hynix, plans to produce power management chips (PMICs) installed on Tesla electric vehicles as early as July at the 8-inch wafer factory in Cheongju, Chungcheongbuk do.
Sharp plans to sell semiconductor business
Recently, Japanese panel giant Sharp released its financial report, which showed a net loss of 152 billion yen in the previous quarter due to recognized impairment losses in its panel business. Sharp announced that the 10th generation panel factory (SDP) in Tujie City, which produces large-sized LCD panels for television, will cease production before the end of September, while production of small and medium-sized LCD panels will be reduced and consideration will be given to selling the camera module business and semiconductor business units such as sensors.
NAND Flash Price Increase Storage Factory Armor Hero Turns Loss into Profit
Original Armor Xia released its fourth quarter (January March 2024) financial report, showing a 31% increase in revenue from last year to 322.1 billion yen, marking the first growth in seven quarters; The net profit was 10.3 billion yen, the first profit in six quarters, and a loss of 130.9 billion yen in the same period last year.
Intel is about to complete financing deal to raise $11 billion for Irish wafer fabs
The report states that Intel is close to reaching a financing agreement with asset management company Apollo, and the Intel Ireland wafer plant is expected to receive $11 billion in construction funds.
Institutional forecast: Global IC sales are expected to soar by 21% in the second quarter of 2024
The latest report from SEMI International Semiconductor Industry Association shows that with the increase in sales in the electronics sector, stable inventory, and increased wafer fab production capacity, there are signs of improvement in the global semiconductor manufacturing industry in the first quarter of 2024, and it is expected that industry growth will become stronger in the second half of the year.
Samsung Electronics Adjusting Strategy: Future Storage Business Focus Shifts to Enterprise Sector
Recently, media reports have reported that Samsung Electronics stated in its latest earnings conference call that the focus of its future storage business will no longer be on consumer grade PCs and mobile devices, but on enterprise areas such as HBM, DDR5 server memory, and enterprise level SSDs.
SK Hynix plans to launch HBM4E in 2026 with a memory bandwidth 1.4 times that of the previous generation
Kim Gwi wook, head of HBM at SK Hynix, stated that the industry's HBM technology has reached a new level, and industry demand has prompted SK Hynix to accelerate the development process. The earliest release of HBM4E memory is in 2026, and the related memory bandwidth will be 1.4 times that of HBM4.
User Info:
Phone number
  • +86
  • +886
  • +852
Company Name
Product model
Comment message