The Impact of US China Trade War Developments on the Taiwanese Communications Industry

On May 14th, the US announced new punitive tariffs on US$ 300 billion in Chinese imports. Meanwhile, the punitive tariff rate for the previous list of US$ 200 billion increased from 10% to 25%, marking the start of a new, more intensive stage of the trade war. Many Taiwanese telecoms that had previously used China for their main production base are now expecting more hits to their bottom line, and are currently accelerating their relocation plans.

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Table of Contents

1.The Latest Developments in the Sino-US Trade War
2.The Impact on the Communications Industry
2.1 Telecom Products on the US$ 325 Billion List
2.2 The Impact by Category
2.2.1 851711
2.2.2 851712
2.2.3 851718
2.2.4 851770
3. The Impact on Smartphones
3.1 The Impact on OEMs
3.2 The Impact on Semiconductors
3.2.1 IC Designers
3.2.2 IC Manufacturers
3.2.3 IC Packaging and Testing
3. Industry Countermeasures
3.1 Setting up Factories Directly in the US
3.2 Exporting through Hong Kong
3.3 Returning to Taiwan 8
3.4 Looking to Southeast Asia
4. MIC Perspective
Appendix
Glossary of Terms

List of Tables

Table 1. US Telecom Sector Imports from China in 2018
Table 2. Products and Manufacturing Bases of Taiwan & Major Telecom Equipment Providers
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List of Topics

The latest developments in the US-China Trade war
The impact on the communications industry by category
The impact on smartphones, including OEMs and semiconductors such as fabless IC designers, foundries, and IC packaging and testing service providers
Four major industry countermeasures towards the trade war

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