When billions of dollars in new US tariffs against China come into effect tomorrow, just $250m worth of chips will be hit.
But the levies have triggered deeper anxieties among US semiconductor companies about disruption to their close trade links with China — as well as worries that Washington is shooting at the wrong target in trying to protect a key part of the US technology industry.
A reminder of the high stakes came on Tuesday, as news spread of a preliminary injunction from a Chinese court banning some sales in China by Idaho-based Micron Technology, whose memory chips are used in many smartphones, computers and other devices.
Fears that the company would be at least partially shut out of a market that accounted for about half its revenues last year sent Micron’s shares down more than 5 per cent on Tuesday.
To many observers in the US, the timing of the Chinese ruling, which came in a patent case, was no coincidence. Ambrish Srivastava at BMO Capital said it appeared to be a tit-for-tat move with tariffs looming.