Supply Chain Connect Tariffs and the Semiconductor Supply Chain – Global Trends, Risks & Opportunities (Part 2)
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Aug 11, 2025 Frank Cavallaro, CEO of A2 Global Electronics + Solutions and an expert in global electronics trade, dives into the intricate challenges of the semiconductor supply chain. He discusses the impacts of tariffs on AI chip imports and the complexities of global trade policies. Frank highlights the effectiveness of the CHIPS Act and examines critical challenges facing U.S. manufacturing. He also emphasizes the importance of resilience, proactive inventory management, and strategies to navigate geopolitical uncertainties in an unpredictable market.
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Tariff Volatility Risks Global Supply Web
- Tariff policy has been a roller coaster with proposals, enacted 10% baseline, and targeted AI chip duties causing major uncertainty.
- High-level tariffs risk disrupting a vast, intricate global semiconductor supply web and force complex investigations.
AI Chips Became A Political Flashpoint
- AI chips became focal points for tariffs and industry pushback due to their market importance and investor attention.
- Announced measures against memory and AI-related products sent shockwaves across OEMs, EMS providers, and hyperscalers.
Targeted Tariffs Shift Geography Of Advantage
- The U.S. announced a 25% tariff on Japan and Korea imports including memory, with an August 1 effective date that pressured stakeholders.
- Such targeted national measures heighten regional supply risks and benefit domestic producers like Micron.