As the US-China tariff saga intensifies, the Trump administration's decision to delay reciprocal tariffs by 90 days offers a fleeting reprieve for the semiconductor supply chain. Despite initial expectations that tariff-related stockpiling would boost first-quarter revenues in 2025, industry sources reveal a different driver: China's voracious appetite for GPUs, spurred by its AI supply chain, has emerged as the true engine of growth

Amid persistent US-China trade tensions, China's Ministry of Commerce responded to a recent US tariff exemption announcement with skepticism, calling it a "limited correction rather than a meaningful policy shift"

Since April, the Trump administration's tariff policies have undergone frequent changes, creating confusion for businesses and traders struggling to adapt. Although the White House announced on April 11 that smartphones, PCs, and other products would be temporarily exempt from reciprocal tariffs—offering tech giants like Apple some breathing room—Chinese exports to the US still face tariffs ranging from 20% to as high as 245%

US-China trade tensions continue to escalate despite the Trump administration's partial tariff exemptions for electronics components. Major tech brands are accelerating production shifts away from China, with Apple reportedly planning to move 40% of Mac production to Vietnam

As US President Donald Trump escalates tariffs on Chinese goods to a punishing 145%—adding an additional 125% on top of an existing 20% base—Zheng Yongnian, a leading Chinese political scientist and government advisor, contends that tariffs surpassing 60% have no substantive difference from an exorbitant 500%. Such steep tariffs effectively disrupt traditional trade mechanisms, pushing the two countries toward an economic "decoupling" scenario

Apple Inc. has managed to dodge its biggest crisis since the pandemic — for the moment, at least

These are the most-read DIGITIMES Asia stories from the week of April 7 – April 13

The escalation in the tariff war has affected the global chip supply chain, causing significant disruption in pricing within China's imported chip market. As a result, some OEMs have temporarily suspended price quotes and are instead adopting a wait-and-see approach, which is expected to impact IC distributors first

The export of iPhones and other electronic devices from India to the US is becoming notably more cost-effective, with prices expected to be around 20% lower than those from China. This shift follows recent tariff exemptions by the US government, which will benefit manufacturers by eliminating reciprocal tariffs imposed on various electronics from China

US tariffs on global trading partners are seen as beneficial to India. Apple may increase its reliance on suppliers in India due to heightened US tariffs against China

According to the latest AI Index Report released by Stanford University's Human-Centered Artificial Intelligence Institute, China is rapidly catching up with the US in developing cutting-edge artificial intelligence (AI) models

China's "Xinchuan" initiative, a national endeavor to supplant foreign technology and imported products with homegrown capabilities, stands as a cornerstone of its industrial policy. However, the reality on the ground reveals a paradox. Vast stockpiles of semiconductor equipment, procured with fervor, languish unused. Absent sufficient orders, these machines remain dormant, underscoring a stark underutilization of China's ambitious investments in chip-making infrastructure

In contrast to tariffs specifically aimed at sectors such as the automotive and semiconductor industries, US President Donald Trump's "reciprocal tariff" approach has instigated a broad and sweeping impact across global markets. Taiwanese manufacturers, who traditionally maintained limited engagement with the US market, have unexpectedly been caught in the crossfire. This policy has significantly affected Taiwan, jeopardizing its established solar industry, ongoing challenges, and future opportunities

The reciprocal tariff measures implemented by US President Donald Trump officially took effect at 12:01 PM Taiwan time on April 9. Taiwanese manufacturers in Southeast Asia have become severely affected, with tax rates in Thailand, Vietnam, and Cambodia reaching as high as 37% to 49%