U.S. chipmakers that outsource manufacturing will avoid China’s new tariffs, according to China’s top semiconductor association. The clarification comes amid growing trade tensions between the U.S. and China. Chips made outside the U.S., like those by Qualcomm and AMD using Taiwan’s TSMC, will be considered non-U.S. origin. Therefore, they will not face China’s steep retaliatory tariffs, now raised up to 125%. However, chips made in U.S.-based factories by companies like Intel and Texas Instruments may still be taxed heavily. These could face tariffs of 84% or more, even if they’re packaged in China. This policy shift boosted Chinese chipmaker stocks and may encourage global firms to expand local operations. Experts say a “China for China” strategy could grow as companies seek to avoid future trade barriers.