HS Code:
Processors, including microprocessors (HS Code: 8542.31), are integral components of electronic devices, serving as the central processing units (CPUs) in computers, smartphones, and other digital equipment. This category encompasses a wide range of integrated circuits designed for processing digital data. The global trade of processors is driven by the demand for consumer electronics, industrial automation, and advancements in technologies like artificial intelligence and the Internet of Things (IoT).
Total Trade Volume
USD 150 billion
Data from 2022
Source
United Nations Comtrade Database & World Trade Organization (WTO)
Average Rate
3.5%
Highest Rate
10% (imposed by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like USMCA and EU-Japan EPA)
Rising demand for AI and machine learning processors
Increased production of specialized chips for data centers and edge computing, driving trade volumes in countries with advanced semiconductor industries
2022
Shift towards smaller, more efficient chips (e.g., 5nm and 3nm processes)
Higher investment in R&D by leading exporters like Taiwan and South Korea, creating a competitive edge in global markets
2021-2023
Supply chain diversification post-COVID-19
Countries like the United States and European nations are incentivizing domestic production, potentially reducing reliance on Asian exporters
2020-2022
The United States passed the CHIPS and Science Act, allocating USD 52 billion to boost domestic semiconductor manufacturing and reduce dependency on foreign processors.
August 2022
Expected to increase U.S. share in global processor trade while potentially affecting imports from Taiwan and South Korea.
The European Union introduced the EU Chips Act to enhance semiconductor production within the region, aiming for 20% of global production by 2030.
February 2023
Likely to spur trade within the EU and reduce reliance on Asian imports, impacting global trade patterns.
The United States imposed export controls on advanced semiconductor technologies to China, citing national security concerns.
October 2022
Significant reduction in U.S. processor exports to China, redirecting trade flows to other regions and affecting Chinese tech industries.