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.

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

Beijing on Friday increased its tariffs on U.S. imports to 125%, hitting back against U.S. President Donald Trump's decision to hike duties on Chinese goods to 145%. EETop's analysis was published on Friday before Beijing's latest tariff hike.