The China Semiconductor Industry Association clarified that the place of origin for chips is determined by the location of the wafer fabrication plant.

China's import tariffs on U.S. goods provide an exemption for U.S. semiconductor firms that outsource their manufacturing, according to a post by the China Semiconductor Industry Association, on Friday.

China on Friday said U.S. chip firms outsourcing manufacturing would be exempt from the country's tariffs on U.S. goods.