Trump Administration Plans to Impose 25-100% Tariffs on Taiwan-Sourced Chips, Including TSMC

[AleksandarK]

The United States, currently led by the Trump administration, could be preparing a surprise package to its close silicon ally—Taiwan. During a House GOP issues conference in Florida, US President Donald Trump announced that he would impose 25% to 100% tariffs on Taiwan-made chips, including the world's leading silicon manufacturer, TSMC. Trump addressed the conference, saying, "In the very near future, we are going to be placing tariffs on foreign production of computer chips, semiconductors, and pharmaceuticals to return production of these essential goods to the United States. They left us and went to Taiwan; we want them to come back. We do not want to give them billions of dollars like this ridiculous program that Biden has given everybody billions of dollars. They already have billions of dollars. […] They did not need money. They needed an incentive. And the incentive is going to be they [do not want to] pay a 25%, 50% or even a 100% tax."

The issue for TSMC is its massive reliance on US companies to drive revenue. The majority of its cutting-edge silicon is going to only a handful of companies, including Apple, NVIDIA, Qualcomm, and Broadcom. With tariffs, the supply chain economics, especially in the world of semiconductors, will break. TSMC's most significant export country is the US, and US companies with trillions of US Dollars of market capitalization rely on Taiwanese silicon. As a result, TSMC will most likely raise its wafer prices, with results trickling down to US companies raising their product prices with additional price hikes. TSMC plans to bring its advanced manufacturing on American soil, but given that these tariffs might break the economic model it currently operates under, it may need to happen sooner. Taiwan-based silicon giant has planned to leave US facilities trailing behind by a generation or two of advanced manufacturing, while domestic facilities produce the newest nodes. If Trump decides to go through tariffs, TSMC could make additional changes to its US-based manufacturing plans.



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[xSneak]

I'm sure this will help with inflation.

Realistically, is this all a bluff ? US Tech 100 futures are still green at the moment. Furthermore, all the tech CEO vampires were at his inauguration and they have announced massive capex this year for AI datacenters. I find it hard to believe he would just impose a 50% tariff on all of his buddies like that.

 

[Kohl Baas]

Please welcome the era of 2000$ RTX 5060s and keep that steady massage on your wallet for the 10.000$ 5090.

 

[outlw6669]

That will sure teach those damn dirty liberal hippies!

Because none of his supporters ever need any Taiwan supplied chips to access his "Truth"ful propaganda, right???

Well, one can only hope that the reduced demand in the US market will improve supply and pricing for the rest of us, who live in the real world...

 

[usiname]

When the world will start doing something for the biggest thread for the world security?

 

[kondamin]

will be Nice having the better prices here in Europe.
i think even people down under and in Brazil will be able to say that quite soon.

When the world will start doing something for the biggest thread for the world security?

Nuclear is back on the table, so at least they are finally talking about fixing the global energy crisis.

dont see what that has to do with this topic though, this is just a spat that’s going to backfire in a major way and will be done away with.

 

[Rightness_1]

TSMC can solve this very easily.

 

[csendesmark]

Obviously Trump just invited TMSC to produce the chips in the USA,
Does not TSMC already building fabs in there?

 

[usiname]

At this point the whole production of chips should be moved to China and other parts of the world and let the USA pay whatever taxes and VATs they want to get anything.

Obviously Trump just invited TMSC to produce the chips in the USA,
Does not TSMC already building fabs in there?

Invited? He will destroy their production in Taiwan and force them to move everything to USA.

 

[Chomiq]

There's no way this could backfire on US, right?

 

[Vayra86]

TSMC can solve this very easily.

Yep, they start selling to China and I hear the EU has some emerging demand, too. Good bargaining chip for Taiwan, there is no way they'll give that away.

And the US will be screwed, with highly priced chips and limited production capacity.
This will end up the same way as the success story of 'Trump vs the Rocket Man' - North Korea is stronger than ever.

The man is a blundering fool.

 

[ChosenName]

All the more TSMC Taiwan output for the rest of the world then....

 

[Hereticbar]

“It may be dangerous to be America's enemy, but to be America's friend is fatal.”​

― Henry Kissinger

 

[ChosenName]

Yep, they start selling to China and I hear the EU has some emerging demand, too. Good bargaining chip for Taiwan, there is no way they'll give that away.

And the US will be screwed, with highly priced chips and limited production capacity.
This will end up the same way as the success story of 'Trump vs the Rocket Man' - North Korea is stronger than ever.

The man is a blundering fool.

The TechBro Robber Baron Oligarchy is not interested in competition, it's interested in profit(eering where possible).

 

[Vayra86]

The TechBro Robber Baron Oligarchy is not interested in competition, it's interested in profit(eering where possible).

Yeah its going to be an interesting four years as their power fantasies meet the real world...

 

[csendesmark]

At this point the whole production of chips should be moved to China and other parts of the world and let the USA pay whatever taxes and VATs they want to get anything.


Invited? He will destroy their production in Taiwan and force them to move everything to USA.

The USA is maybe the biggest consumer if you look by country, but not the only.

 

[Bwaze]

At the same time sanctioning that TSMC shouldn't deal with China, and imposing crushing tariffs to export to USA?

Well, who needs independent Taiwan anyway, "that's not our fight".

 

[TumbleGeorge]

If old tariff is 10%, the 25% increase will change them to...12.5%. 100% increase will make tariffs 10%+10%=20%.

 

[Bwaze]

If old tariff is 10%, the 25% increase will change them to...12.5%. 100% increase will make tariffs 10%+10%=20%.

"impose 25% to 100% tariffs on Taiwan-made chips" - it doesn't say "increase tariffs by".

 

[Hereticbar]

If old tariff is 10%, the 25% increase will change them to...12.5%. 100% increase will make tariffs 10%+10%=20%.

Er..... you misread what he said.

It is 25-100% tariffs, not 25-100% increase in tariffs.

 

[MacZ]

Has any of these Tariffs relocations worked anytime ?

 

[friocasa]

As automation and AI takes over, many jobs are rendered obsolete, and more workers are available, so it makes sense to stop relying on other countries for manufacturing

On top of that, the US now have some manufacturing facilities for chips, it would have been a harder pill to swallow just a few years ago

And almost all the companies who design the chips are US based, including Nvidia, AMD, Intel, and Qualcomm

So it makes sense, now I wonder what will happen with Taiwan

 

[TumbleGeorge]

Er..... you misread what he said.

It is 25-100% tariffs, not 25-100% increase in tariffs.

Until there is a ready document to be signed by the president and sealed with a wet seal, we cannot be sure what will actually happen. We are discussing rumors brought to us by the medias and so on.

 

[Hereticbar]

Until there is a ready document to be signed by the president and sealed with a wet seal, we cannot be sure what will actually happen. We are discussing rumors brought to us by the medias and so on.

How is it rumors? I don't think you understand, those were his words from his mouth. He SAID it in front of an audience in a conference in Florida. I hate it but he's the president and like it or not he has the authority to decide America's trade policies.

So don't blame this on the media.

 

[Bwaze]

We are discussing rumors brought to us by the medias and so on.

Which part is rumor, reporting what Trump said, or Trump misreading his own policy?

It's just like retards defending Trump that he never actually said he'd take Greenland, only for him to start repeating this over and over again, almost every day...