Tax-free conditions for overseas imports of US chips? Lutnik: Committed to build a factory

Howard Lutnick, US Secretary of Commerce, revealed that businessmen who have promised to build chip factories in the United States and are not yet completed will be exempted from 100% tax on Midea chips from overseas.

Luitnik said on the 7th when he was interviewed by Fox Business, "The president means that if you promise to go to the U.S. factory during his tenure, submit an application to the Ministry of Commerce, and also accept supervision throughout the process, he will allow you to import chips without taxes at the factory."

He emphasized, "Your application must be confirmed and build a factory under supervision" and "U.S. President Donald Trump, the United States will usher in a semiconductor-related construction campaign of up to $1 trillion."

Lutnik reiterated Trump's statement, noting that Telco is preparing to invest $200 billion in Arizona.

Trump put in a shocking momentum on Wednesday (August 6) to collect 100% chip tax responsibilities, but he emphasized that producers in the United States do not need to pay tax responsibilities. "In a different sentence, we will charge 100% tax on chips and semiconductors. However, if you are producing in the United States, you don't have to pay any fees."

However, Trump did not specify whether the exemption would only be applicable to chips built in the United States, or the same batch of manufacturers that promised to manufacture in the United States, and there would be no tax on chips produced in other countries.

Taiwanstalline ADR jumped 4.86% on the 7th and closed at US$242.62, reaching a new closing high since July 30; the increase has reached 22.85% so far this year.

Extended reading: Trump once again named Taiwan and Taiwan Power's investment of US$20,000