Semiconductor Tariffs: The New Chip Import Duties Explained
Semiconductors have been at the center of US trade policy since the global chip shortage of 2020-2023. While the CHIPS Act focused on boosting domestic manufacturing, the January 2026 tariff adjustments take a different approach — using import duties to reshape where chips come from.
What Changed in January 2026
New tariff rates on semiconductor imports took effect January 20, 2026. The changes primarily affect HTS chapters 84 and 85, targeting:
- Finished semiconductors (processors, memory chips, sensors)
- Chip manufacturing equipment (lithography machines, etching tools, wafer handling)
- Semiconductor materials (silicon wafers, photomasks, specialty chemicals)
- Assembled circuit boards with significant semiconductor content
Key HTS Codes Affected
| HTS Code | Description | Previous Rate | New Rate |
|---|---|---|---|
8541.10 | Diodes (excl. photosensitive/LED) | Free | Varies by origin |
8541.21 | Transistors (< 1W dissipation) | Free | Varies by origin |
8541.49 | Other semiconductor devices | Free | Varies by origin |
8542.31 | Processors and controllers | Free | Varies by origin |
8542.32 | Memories (DRAM, NAND, etc.) | Free | Varies by origin |
8542.39 | Other integrated circuits | Free | Varies by origin |
8486.20 | Chip manufacturing equipment | Free-2.5% | +10-25% on select origins |
The CHIPS Act Connection
These tariffs work alongside the CHIPS and Science Act's $52 billion in domestic manufacturing incentives. The strategy: make it more expensive to import chips from non-allied countries while subsidizing domestic production. Companies receiving CHIPS Act funding are also subject to guardrails preventing them from expanding advanced chip manufacturing in China.
Impact on Tech Prices
The direct price impact depends on the product:
- Consumer electronics: Modest impact. Most chips in phones and laptops come from Taiwan and Korea (allied origins with lower rates)
- Automotive: Mixed. Legacy chips (28nm+) from Chinese foundries face higher costs
- Industrial/IoT: Potentially significant. Many commodity chips are sourced from mainland China
- Data centers: Minimal for high-end AI chips (TSMC/Samsung), higher for commodity server components
What Importers Should Do
- Verify country of origin for all semiconductor components in your supply chain
- Check specific HTS codes on Tariff Check for current rates
- Evaluate alternative sourcing if you're currently importing from high-duty origins
- Document origin carefully — CBP is scrutinizing semiconductor origin claims, especially for chips that transit through third countries