Trump To Tariff Chips Made In Taiwan, Targeting TSMC
Posted: Jan 28, 2025
- President Trump plans to impose tariffs of up to 100% on chips produced in Taiwan
- Targeting companies like TSMC, which supplies Apple, Nvidia, and AMD
- Aim is to encourage more chip production in the US
- Policy might cause price hikes for computer products
- TSMC-made chips are not directly exported to the US, but sent to other countries for assembly
- Implementation of tariffs depends on US trade officials.
- President Trump is preparing to place tariffs beyond Chinese assembled electronics to computer chips made in Taiwan, warning the tariffs could reach as high as 100%
- Trump aims to place tariffs on foreign production of computer chips, semiconductors, and pharmaceuticals to bring production back to the US
- Leading US tech companies have been sourcing processors from Taiwan's TSMC, which serves clients including Apple, Nvidia, Qualcomm, and AMD
- Trump criticizes the US CHIPS and Science Act, signed by President Biden, which invests over $52 billion in domestic chip manufacturing
- Trump threatens tarifs to push more US tech companies to migrate chip manufacturing to the US instead of Taiwan
- Despite receiving $7.9 billion from the CHIPS Act, Intel might disagree with Trump's approach
- Trump says companies can avoid these tariffs by building their factories in the US
- Any tariffs on Taiwanese-manufactured chips could cause price hikes for products like Nvidia graphics cards, Apple iPhones, and AMD processors
- TSMC-made chips are not exported directly to the US, but to China and other Asian countries, where they are assembled into consumer electronics bound for the US.
What do people on Reddit think?
🚨 Reddit sentiment: negative - Most comments are expressing concerns about the negative impact of tariffs on TSMC, U.S. tech industry, and consumers. Summarized comments: - Concerns about the impact of tariffs on the stock market and tech industry - Chip fabs are difficult to build and require specialized skills, which are mostly available in Taiwan - U.S. fabs are not capable of producing chips at the quality level of TSMC - Tariffs will increase the cost for U.S. consumers and impact national security - U.S. tech companies may suffer due to lack of equivalent domestic production - Fear of significant price hikes in consumer tech products, including iPhones - General frustration with tariff policies and lack of alternatives in U.S. production capabilities Stock tickers discussed: $TSMC
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