Tariffs Lifted, Stockpiles Loaded — Taiwan's Tech Supply Chain Springs Into Action!

Tech Tariff Relief Brings Temporary Reprieve — Taiwan's Electronics Supply Chain Accelerates Stockpiling

The U.S.-China tariff conflict remains highly unpredictable. Following former President Trump's announcement of a 90-day tariff exemption, U.S. Customs on April 11 released a list of updated duty-free codes. The exemption retroactively applies to key electronic products such as laptops and semiconductors, covering nearly all consumer electronics. This move has offered temporary relief to the tech sector, particularly Taiwanese manufacturers, who are now accelerating their strategic stockpiling efforts.

Stockpiling in Full Swing

In anticipation of tariff uncertainties, Taiwan's electronics supply chain had already initiated stockpiling campaigns before the exemption was formally announced. Companies, especially those exporting from China, had begun accumulating inventory through air freight, building up approximately one month's supply. With new exemptions in place, the strategy has shifted to further stockpiling an additional 1 to 1.5 months of materials as businesses wait to see how tariff policies develop.

China's risk of facing supply disruptions has further driven Taiwanese companies to secure components in advance. The electronics sector is now seeing a wave of urgent orders, mobilizing the entire supply chain.

Taiwan-U.S. Trade Snapshot

In 2024, Taiwan's exports to the U.S. reached US$111.4 billion, accounting for 23% of total exports. Electronics and information technology products led the way, totaling US$79.2 billion. Among them, servers, graphics cards, and networking equipment contributed the most — with servers alone comprising 74% of Taiwan's tech exports to the U.S.

Strategic Response to Tariff Pressure

Despite the latest exemptions, market analysts and research institutes continue to simulate future tariff scenarios. According to Fubon Investment Consulting, companies are seeking ways to minimize tariff exposure through regional manufacturing strategies under the USMCA framework.

For example, standard and AI servers assembled at the L6 level in any region can be sent to Mexico for L7–L10 assembly, changing their HS codes before entering the U.S. This approach could effectively bypass U.S. tariffs.

Fubon also highlighted key beneficiaries of this strategy:

• Firms with operations in Mexico: Foxconn, Wiwynn, and Inventec are well-positioned to leverage Mexican capacity.

• Firms with U.S. capacity: Quanta and Wistron can complete L6 assembly in Taiwan and finish the process in the U.S., likely facing tariffs of less than 10% — lower than earlier estimates.

  
  

Outlook and Caution

While the impact of tariffs on server products — both standard and AI — appears relatively manageable, the broader macroeconomic environment remains a concern. As a result, shipment growth forecasts have been revised downward:

• Standard servers: From 4% growth to flat

• AI servers: From 60% growth to 50%

  
  

Fubon stressed the importance of ongoing vigilance, as U.S. tariff regulations could shift quickly depending on political and economic developments.

Source of Information: Yahoo ! News